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Old 01-11-2010, 05:48 PM
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Default Krispy Kreme in administration

Well doughnut fans I have some bad news - Krispy Kreme's Australian arm is in administration

http://www.smh.com.au/small-business...ml?autostart=1

Guess the blessed mix of fat and sugar just isn't enough down under

EDIT - Mods we better hide this thread from American Dave. The loss of Krispy Kreme is almost like not having Independence Day. Couldn't stand to see a grown Dave cry

McGuigan said Kinghorn and the American owner of the Krispy Kreme brand, Krispy Kreme Doughnut Corporation, are supportive of the decision to go into administration and try to restructure the company.

The chain's 50 stores – all of which are company owned – will continue to trade for the moment. However, industry experts say up to half of the stores are unprofitable, which suggests some major rationalisation is required for the company to return to profitability.

Krispy Kreme Australia admits redundancies for some the company's 600 staff are a possibility, but says all entitlements will be met.

While Krispy Kreme stores attracted long queues when the company first launched, the business has struggled in recent years with the weak retail environment, poor site selection and a high-cost distribution model that meant fresh product had to be delivered to stores every day.

The problems were underlined in September 2008 when Soul Private Equity wrote down the value of its investment in Krispy Kreme to zero.
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Last edited by GTB Liberty; 01-11-2010 at 05:53 PM.
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