Industry News | November 3, 2005
Troubled Doughnut-Maker Alters Ownership of Foreign Franchises
The company said it has:
Acquired the assets of KremeKo Inc., a Canadian franchisee that declared bankruptcy earlier this year. Krispy Kreme had owned 40 percent of that franchisee when it declared bankruptcy, and had been providing cash to continue its operations as it restructured. Sold its interest in Krispy Kreme Australia Pty Ltd. to Australian investors for 5.1 million Australian dollars. Shed its equity stakes in Amazing Glazed LLC and Amazing Hot Glazers LLC, two Pennsylvania franchisees. The company also announced it was restructuring various debt guarantees and credit agreements it had related to franchises in the United States, Australia, Canada and the United Kingdom.
Separately, the company (NYSE: KKD - News) announced in a news release that a store operated by franchise owner Lincoln Spoor had opened in Missoula, Mont. The store, which will employ 80 people, is Spoor's second in Montana and the 15th in his franchise.
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