Closing almost half of its underperforming stores, Krispy Kreme Australia has risen from voluntary administration.
The donut chain first entered voluntary administration at the end of October when the company was at risk of not meeting its financial obligations if it continued trading under its current model, which has since seen the closing of 24 of its 59 stores.
Krispy Kreme Australia chairman John McGuigan said in a statement the period of voluntary administration had allowed a more financially stable company to emerge.
“The remaining retail outlets all have strong sales and customer support, and the company can now continue trading without underperforming stores adversely affecting the business,” he said.
The company said creditors approved a deed of company arrangement with a $2.3 million fund to satisfy creditor claims. As a result, management and control of Krispy Kreme Australia has been reverted back to the directors.
The 201 employees who loss their jobs will receive full payments from the deed fund while continue employees will be paid their entitlements in the ordinary course of business.
Krispy Kreme stores remained open throughout the process and continue to trade.
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