DOH! NO KREME FOR KRISPY
Written on the 18 November 2010
THE Pacific Fair Krispy Kreme retail outlet was typically swamped with customers today, despite the US company’s Australian arm going into voluntary administration.
Store manager Stephanie, who would not reveal her surname when contacted, told Gold Coast Business News she was running the store on her own, with eight customers waiting.
“We’re a bit busy, we’re going great,” she says.
The fate of the nine Queensland outlets and manufacturing facility will not be certain for another month.
Spokesperson Matt Horan says the final decision for the nine outlets and one manufacturing facility will now be left to administrators Mike Smith and Peter Hellig of Smith Hancock Chartered Accountants.
“Some stores have been going very well, some haven’t been going very well and this is because they’ve been hit by external factors, like high rents and poor locations,” he says.
The company trailblazed into Australia seven years ago from the US and now has 50 outlets nation-wide.
Krispy Kreme Australia director John McGuigan says the underlying business remains strong but underperforming stores are adversely affecting the company.
“Directors have determined that a restructure is necessary and the appointment of a voluntary administrator is the responsible action in view of the risk of insolvency if the company continued to operate in its current form,” says McGuigan.
“It is anticipated that all Krispy Kreme stores will continue trading while the process gets underway and customers will notice no difference to the quality of our made-fresh daily product or the level of service.
“The directors believe that the company’s core business, which has a seven-year history in Australia, remains strong and that a financially stable company will emerge from the process.”
Representatives from Krispy Kreme’s Albert Street store were unable to comment, but indicated confidence for the future with their level of sales.
The company’s Queensland store locations include Albert Street, Myer Centre, Pacific Fair Gold Coast, Caboolture South, along with outlets in BP Stapylton, BP Coomera and Shell Nudgee.