Krispy Kreme Australia in bankruptcy

Oct. 31, 2010 at 7:12 PM

SYDNEY, Oct. 31 (UPI) -- The Australian division of Krispy Kreme doughnuts has gone into voluntary bankruptcy, the company said.

With bankruptcy, which is referred to as voluntary administration in Australia, the company is seeking to find a way to save any parts of its business.

Krispy Kreme spokesman Matthew Horan told the Australian Broadcasting Corp. Monday the company troubles were the result of several poorly performing stores.

"It's like a two-speed business with some locations doing very well and some not," Horan said, adding it was too early to say how the company's 660 employees will be affected.

Krispy Kreme has 54 outlets in Australia, the largest number outside the United States. The stores are found mostly in the eastern states of New South Wales, Victoria and Queensland.

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