D'ough! Krispy Kreme going bust
November 1, 2010 - 8:32AM
The Iced Dough Vo, a tribute to the famed Iced VoVo and part of a so-called 'Fair Dinkum' range of Krispy Kreme offerings that were designed to lure Australians. The attempt appears to have failed.
Krispy Kreme doughnuts is going into voluntary administration because of poor sales.
The Australian arm of the US company was placed in the hands of accountancy firm Smith Hancock on Friday, it has been reported.
Krispy Kreme has 50 stores across Australia, employing 660 staff.
Company spokesman Matt Horan says it's not yet known how many employees will be made redundant or if any stores will be closed.
"In the event that there are redundancies arising out of the voluntary administration process, all employee entitlements have been protected," Mr Horan told News Limited.
"Several factors, including location, sales declines, high rents and high distribution costs, have meant that a number of stores are losing money," he said.