Blacktown. Krispy Kreme transformation

Krispy Kreme Australia, based at Blacktown, is expected to transform into a “bigger and better” business under a new capital structure after being placed in voluntary administration by its directors. Sources said the move would allow it to make changes to the struggling business model, and potentially lead to an introduction of a franchising similar to its US parent, The Australian Financial Review said. The company opened its first Australian site in Penrith in 2003.

Blacktown. Krispy Kreme into administration

Poor sales have forced Krispy Kreme Australia, based in Blacktown, to go into voluntary administration and placed in the hands of accountancy firm Smith Hancock. The doughnut chain denied the downturn has been caused by increasingly health-conscious customers, instead pointing to a number of ailing outlets affected by high rents and high distribution costs. The US-based chain arrived in Australia seven years ago - now there are 50 outlets employing 660 staff across Australia. Company spokesman, Matt Horan, said it was unknown how many employees would be made redundant or if any stores would be closed.