Doughnut Time is set to close many of its stores as Damian Griffiths, the founder and owner of the franchise succumbs to financial pressure.
The entrepreneur has had to start closing down some its stores in order to cope with the financial struggles. The store had 30 stores when performing at its best in Australia and the UK.
Mr Griffiths is said to have sold the business to the former CEO and managing director of Doughnut Time, Dan Strachotta.
Mr Griffiths says that he takes full blame for the financial struggles and his need to sell the business saying that he “expanded too quickly”. He cited one of the reasons as having “too many big ideas and dreams” for the franchise that he expanded throughout Australia.
The sale of the company is set to save some of the country’s Doughnut Time stores but many will have to close leaving employees without a job. Some are said to still be owed money for the hours they have worked.
Close to half of Australia’s Doughtnut Time stores will be closing down with only one stroe remaining in Sydney – its Newtown shop. Throughout the rest of the country, Melbourne will be keeping three stores at Degraves Street, Chapel Street and Fitzroy, whilst Brisbane will keep its South Bank and Clayfield Street stores as well as Mermaid Beach on the Gold Coast.
The sale of the shop hasn’t come without controversy with some employees claiming that they are owed thousands of dollars. In February, 35 workers across 15 stores said that they were owed a combined total of $70,000.
There are claims that Mr Griffiths owes family members money and that is one of the reasons that he is facing bankruptcy and hence has had to sell the business.
Despite having to close the Australian branch of its stores, the chain still has plans to expand and open up stores in Dubai and Los Angeles as well as opening more stores in the UK.
Doughnut Time opened its first Australian store in Brisbane in 2015.