Another Hole!!!
We Have been watching this company and reporting the progress how a good company with greed and mismanagement can go downhill
A six-store subsidiary of Krispy Kreme Doughnuts Inc. that includes the store on Route 70 in Brick has filed for Chapter 11 bankruptcy protection from its creditors, the latest in a series of blows to the troubled company.
Freedom Rings LLC, which had been 70 percent, owned by Krispy Kreme, became fully owned by the corporation before the bankruptcy filing, spokeswoman Laura Smith said Monday. Three of the other five stores are in or near Philadelphia; the other two are in Delaware."
The Philadelphia area stores were not performing well financially," Smith said. "Many other stores around the country are performing well financially," he said, noting that there are approximately 360 Krispy Kreme locations.
Smith said the six stores remain open, and she declined to speculate if any would be closed as part of the reorganization. The Brick store at Route 70 and Chambers Bridge Road, the only franchise in Monmouth and Ocean counties, opened in July 2003.
The petition seeking Chapter 11 protection from creditors was filed Sunday in Delaware. Freedom Rings owes Krispy Kreme $24.1 million, excluding lease obligations, the Winston-Salem, N.C.-based doughnut maker said. Freedom Rings said it had sales of $22.7 million in fiscal 2005 and 220 employees. The subsidiary's petition for Chapter 11 protection said it owes all creditors less than $50 million.
A lawsuit filed earlier this month by two partners in Los Angeles-based Great Circle Family Foods LLC claimed Krispy Kreme was trying to force their company, which has 32 stores, into bankruptcy. The largest Krispy Kreme franchisee also claimed company executives misappropriated marketing money and billed for phony charges.
The company said it would "vigorously" defend itself against the charges.The company's stock, which traded for $105 in November 2000 before a pair of two-for-one stock splits, fell 26 cents, or 5.4 percent, to close at $4.60 Monday on the New York Stock Exchange. Its shares have traded in a range of $4.05 to $12.95 over the past 52 weeks.
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