Krispy Kreme plans restructuring of Canadian Operations
Krispy Kreme Doughnut Corporation to purchase the assets of KremeKo, Inc.
16/11/05 Krispy Kreme Doughnuts, Inc. has announced that its wholly-owned subsidiary, Krispy Kreme Doughnut Corporation, has obtained Canadian Court approval to purchase the assets of KremeKo, Inc., one of Krispy Kreme Doughnut Corporation's Canadian franchisees, and will now operate these Canadian operations as a wholly-owned subsidiary of Krispy Kreme Doughnut Corporation. Since April 2005, KremeKo has been operating under protection of the Companies' Creditors Arrangement Act, the Canadian equivalent of Chapter 11.
Krispy Kreme anticipates that the purchase transaction will close by the end of the month. The Canadian operations include six retail stores, along with a wholesale operation.
Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme is a leading branded specialty retailer of premium quality doughnuts, including the Company's signature Hot Original Glazed. There are currently approximately 350 Krispy Kreme stores and 60 satellites operating systemwide in 45 U.S. states, Australia, Canada, Mexico, the Republic of South Korea and the United Kingdom.
