8-K

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
                       PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

      Date of Report (Date of earliest event reported): September 24, 2001

                       Dairy Mart Convenience Stores, Inc.
               (Exact Name of Registrant as Specified in Charter)

Delaware                          0-12497                 04-2497894
(State or Other Jurisdiction      (Commission             (IRS Employer
of Incorporation)                 File Number)            Identification No.)

One Dairy Mart Way, 300 Executive Parkway West, Hudson, Ohio   44236
(Address of principal executive offices, including zip code)

Registrant's telephone number, including area code:  (330) 342-6600


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ITEM 3. BANKRUPTCY OR RECEIVERSHIP.

         On September 24, 2001, Dairy Mart Convenience Stores, Inc. and
substantially all of its United States subsidiaries filed voluntary petitions
for protection under Chapter 11 of the U.S. Bankruptcy Code in the United States
Bankruptcy Court for the Southern District of New York. The Chapter 11 Cases
have been assigned to Judge Arthur J. Gonzalez and designated as Case No.
01-42400. The status of the proceedings are more fully described in the press
release, a copy of which is filed as Exhibit 99.1 hereto and which information
is incorporated herein by reference. During the Chapter 11 process, Dairy Mart
expects that its stores will continue to operate normally.

ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.

99.1  Press Release, dated September 24, 2001



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                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                       DAIRY MART CONVENIENCE STORES, INC.


Date:  December 18, 2001               By:    /s/ Gregory G. Landry
                                            -----------------------------------
                                              Gregory G. Landry
                                              President and
                                              Chief Executive Officer

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EX-99.1

EXHIBIT 99.1


DAIRY MART VOLUNTARILY SEEKS CHAPTER 11

DIP FINANCING LINED UP -- INVESTMENT BANKERS RETAINED -- STORES REMAIN OPEN

HUDSON, Ohio--(BUSINESS WIRE)--Sept. 24, 2001--Dairy Mart Convenience Stores,
Inc. (AMEX:DMC - NEWS) said today that it and substantially all of its
subsidiaries filed voluntary petitions for protection under chapter 11 of the
U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern
District of New York. During the chapter 11 process, Dairy Mart and its stores
will continue to operate normally.

Gregory G. Landry, president and chief executive officer, said Dairy Mart's 550
stores in seven states remain open for business as usual, and all of the
company's more than 3,800 employees should report to work as normal. He said
employees' paychecks and benefits are protected, and management does not
envision layoffs as a result of today's action.

Landry said that Dairy Mart elected to seek court protection to give it time to
examine all ways in which to maximize value in the company. He added that the
investment banking firm of Houlihan, Lokey, Howard & Zukin has recently been
retained to assist in exploring all strategic alternatives to achieve that goal.
At this point, however, it is far too early to predict what ultimate value, if
any, stockholders may realize. Similarly, recovery values for subordinated
debtholders and unsecured trade creditors cannot be estimated at this time.

On July 30, the company terminated an agreement to merge with DM Acquisition
Corp., an entity controlled by Robert B. Stein, Jr., the previous chairman,
chief executive officer and president of Dairy Mart. The merger could not be
completed because Stein's financing was not in place. Accordingly, Dairy Mart's
board of directors determined that terminating the merger agreement was the best
course of action and would enable the company to focus its efforts on managing
near-term operating performance while exploring all financial and strategic
alternatives. At that time, Stein relinquished his positions and Landry was
appointed president and chief executive officer of Dairy Mart.

"This company has been through a tumultuous period," said Landry. "Court
protection will now allow us to stabilize the situation so that Dairy Mart's new
management team can take steps to build value and make this a better company.
The convenience-store format is one that we absolutely believe has potential for
success. However, Dairy Mart must improve store performance and lighten the
burden of its present capital structure if we are to succeed."

Landry said that three factors made this filing the company's only viable
option. Those factors are: a heavy debt load from a history of leveraged
acquisitions; changing dynamics in the industry that have depressed key-product
profit margins; and the termination of the previously announced sale-merger.

As part of its chapter 11 filing, Dairy Mart has filed a motion seeking court
approval to obtain a Debtor-in-Possession (DIP) credit facility of up to $46
million with a group of lenders led by


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Foothill Capital Corporation, a wholly owned subsidiary of Wells Fargo &
Company. Pending a further hearing, Dairy Mart is seeking immediate
authorization to use up to $10.75 million of the DIP facility. The DIP financing
will be used for employee salaries and benefits, ongoing operations and other
working capital needs.

"We believe our DIP financing will provide more than ample funds to cover the
company's financial needs throughout the reorganization period," said Landry.
"Effective today, Dairy Mart begins new relationships with its vendors and other
business partners. Our suppliers should continue to deliver as usual. They
should rest assured they will be paid promptly on agreed-to terms for goods and
services rendered from this point forward while a plan of reorganization is
developed to restructure debt incurred before the filing."

Landry said that a number of steps had been taken in recent weeks to help
stabilize the company and prepare it for a turnaround. These included creation
of a new management team in August 2001, consisting of six executives with
significant experience; renewed emphasis on marketing, merchandising and
store-level execution; and increased efforts to align employees with corporate
goals, including new training and communication programs.

Dairy Mart Convenience Stores, Inc. owns or operates approximately 550 retail
stores in seven states located in the Midwest and Southeast. For more
information, visit Dairy Mart's web site at http://www.dairymart.com/.

NOTE: Statements contained in this release that are not historical facts,
including those relating to Dairy Mart's ongoing operations and financing during
the reorganization process, plans to build and maximize the company's value, and
ability to complete a reorganization may constitute forward-looking statements.
Factors that could cause actual results to differ materially from those stated
or implied in the forward-looking statements include failure to adequately
finance and improve its current operations, the failure to promptly complete and
receive court approval of a plan of reorganization, adverse rulings by the
bankruptcy court and other factors disclosed in Dairy Mart's periodic filings
with the Securities and Exchange Commission. Dairy Mart assumes no obligation to
update the information contained in this news release.

- ----------
Contact:
     Edward Howard & Co.
     Kathy Obert or Pat Gallagher
     330/342-6714 or 216/902-0009
               or
     Yopko Communications
     Betty Yopko, 330/342-6714 or 440/834-8615




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