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Krispy Kreme goes bust in Hong Kong
The Associated Press
WINSTON-SALEM - The Hong Kong franchisee of Krispy Kreme Doughnuts is going into liquidation two years after starting business.
Five of the seven Hong Kong stores closed Sunday. Two outlets at the city's airport will remain open "as long as possible" for the benefit of creditors, Stephen Briscoe, managing director of liquidator Briscoe & Wong, told Bloomberg News.
"One of the company's difficulties certainly appears to be high rent in various premises in Hong Kong," Briscoe told Bloomberg.
The Winston-Salem doughnut chain is trying to expand overseas as its sales suffer in the U.S. It recently signed franchise development deals for Turkey, Malaysia and three major cities in China: Shanghai, Beijing and Tianjin. Krispy Kreme said the franchisee had been in operation in Hong Kong for about two years. It said that although it is "disappointed" by this development, its international growth strategy hasn't changed.
HK's Krispy Kreme goes bust
Tue, Oct 28, 2008
Reuters
HONG KONG - THE Hong Kong franchisee of American chain Krispy Kreme Doughnuts is going into liquidation, as it becomes the latest company in the city to close amid the global financial crisis.
Of its seven stores in Hong Kong, five will be closed immediately.
The two outlets at the Hong Kong International Airport will continue to trade until further notice, said Briscoe & Wong, which has been appointed as independent financial advisers to help the franchisee find liquidators.
A creditors' meeting would be held on Nov 12 to seek liquidators to deal with the assets of Krispy Kreme Hong Kong and the claims of its employees and creditors, Briscoe & Wong said in a statement yesterday.
'The directors are very disappointed that they have had to take this action,' it said.
Earlier this month, the United States sweet-treats chain said it agreed with KKD Lotte Holdings to open 35 Krispy Kreme retail locations over the next four to five years in China's major cities, including Shanghai, Beijing and Tianjin.
Lotte is Krispy Kreme's franchisee in South Korea and Japan.
Krispy Kreme has struggled in recent years with restatements, investigations into its past accounting records and a decline in doughnut sales that sent some of its franchisees into bankruptcy.
The Associated Press
WINSTON-SALEM - The Hong Kong franchisee of Krispy Kreme Doughnuts is going into liquidation two years after starting business.
Five of the seven Hong Kong stores closed Sunday. Two outlets at the city's airport will remain open "as long as possible" for the benefit of creditors, Stephen Briscoe, managing director of liquidator Briscoe & Wong, told Bloomberg News.
"One of the company's difficulties certainly appears to be high rent in various premises in Hong Kong," Briscoe told Bloomberg.
The Winston-Salem doughnut chain is trying to expand overseas as its sales suffer in the U.S. It recently signed franchise development deals for Turkey, Malaysia and three major cities in China: Shanghai, Beijing and Tianjin. Krispy Kreme said the franchisee had been in operation in Hong Kong for about two years. It said that although it is "disappointed" by this development, its international growth strategy hasn't changed.
HK's Krispy Kreme goes bust
Tue, Oct 28, 2008
Reuters
HONG KONG - THE Hong Kong franchisee of American chain Krispy Kreme Doughnuts is going into liquidation, as it becomes the latest company in the city to close amid the global financial crisis.
Of its seven stores in Hong Kong, five will be closed immediately.
The two outlets at the Hong Kong International Airport will continue to trade until further notice, said Briscoe & Wong, which has been appointed as independent financial advisers to help the franchisee find liquidators.
A creditors' meeting would be held on Nov 12 to seek liquidators to deal with the assets of Krispy Kreme Hong Kong and the claims of its employees and creditors, Briscoe & Wong said in a statement yesterday.
'The directors are very disappointed that they have had to take this action,' it said.
Earlier this month, the United States sweet-treats chain said it agreed with KKD Lotte Holdings to open 35 Krispy Kreme retail locations over the next four to five years in China's major cities, including Shanghai, Beijing and Tianjin.
Lotte is Krispy Kreme's franchisee in South Korea and Japan.
Krispy Kreme has struggled in recent years with restatements, investigations into its past accounting records and a decline in doughnut sales that sent some of its franchisees into bankruptcy.
