Krispy Kreme Doughnuts Inc.’s Australian unit exited bankruptcy protection after winning approval of its restructuring from creditors, the company said.
Management and control of the unit reverts to the directors, Krispy Kreme Australia said in an e-mailed statement today. Creditors can file claims against a A$2.3 million ($2.2 million) fund that was approved as part of the restructuring and will probably receive 45 cents for each dollar they’re owed, the company said.
Krispy Kreme Australia appointed voluntary administrators, the Australian version of a Chapter 11 bankruptcy filing in the U.S., after directors concluded that the company was at risk of not meeting its financial obligations due to a number of underperforming stores. The company shut 24 of its 59 stores in the country as part of the restructuring.
“The remaining outlets all have strong sales,” John McGuigan, Sydney-based chairman of Krispy Kreme Australia, said in the statement. “The company can now continue trading without underperforming stores adversely affecting the business.”
Krispy Kreme Australia employs 490 people. It fired 15 full-time workers, 142 part-time workers and 44 casual employees as part of the restructuring, the company said.