The Krispy Kreme franchisee for Illinois filed for Chapter 11 bankruptcy today, and said it plans to close about half of its 15 Chicago area stores as it reorganizes under court protection.
Sweet Traditions LLC, of St. Louis, blamed a lease dispute involving highway oasis for its financial problems, as well as a dearth of new products from troubled Krispy Kreme Doughnuts Inc., which has suffered accounting lapses and a change in managers. The company said it will cut about 110 to 140 jobs from its current payroll of more than 600.
“Its business as usual,” said Laura Schlegel, president of Sweet Traditions. “We will retain the franchise for Krispy Kreme in eastern Missouri, Illinois and northwest Indiana.”
danakeith on May 20th, 2008 at 3:37 am
So sad to here such thing.. What exactly the reason why the sudden situation arise?