Krispy Kreme in administration
 

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

[URL="http://www.smh.com.au/small-business/dough-krispy-kreme-whipped-20101101-1798u.html?autostart=1"]http://www.smh.com.au/small-business/dough-krispy-kreme-whipped-20101101-1798u.html?autostart=1[/URL]

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

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 ;)

[I]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[B] zero[/B].[/I]

Where is the end life button? I flew to Melbourne just to get krispy kremes..

it's business as usual in fatville usa

Heard great things about them but never tried em, are they THAT good?? Everyone I know that's had them say they're amazing.

They were a victim of a boom/fad, they tried to keep up with demand but overcapitalised in the process. But don't worry they won't go under completely, just wait, a few hundred ppl will lose their jobs, they'll shut down a quarter or more of the stores - but in the long run they'll still operate in some form here.

They are awesome if they are warm but cold they are just average and that is the problem with their business model here in Australia imo..to many petrol station shops and not enough full size service bakeries with drive thru service.

Definately still a market for them, but the business will have to approach it smartly...

sad day for the Vic police force

there was one across the road from my hotel when i was in japan 2 weeks ago , and there was a 24h exotic pet store , good to know i am only 10 mins away from a monkey and a box of krispy kremes just in case the mood strikes

A grossly-good munchie stopper and if they'd opened a store at perth airport they coulda had some respec. For those of you turned on by organic foods it's interesting to note the standard glaced Krispy Kreme "delaminates" on a 5 hour flight from sydney.

^ Delaminates like a tyre? Haha that's awesome :D

Never been interstate but mates have brought them back and I though they were alright, but Puffin Fresh and Donut King will do fine for me.