Doughnut Time has shut down all its stores in Australia and is currently in liquidation.
Principal at the doughnut company’s appointed liquidators and receivers Menzies Advisory, Michael Caspaney told Inside Retail after closing most of the Doughnut Time’s stores in January and February, the remaining locations also shut down last week.
“There appeared to be a possible deal with the CEO for him to buy some of the profitable stores but that fell over late last week,” said Caspaney. “At this early stage there could be up to 300 employees owed wages and entitlements from 23 different sites in Queensland, NSW and Victoria.”
It was previously reported that Dan Strachotta, former chief executive of Doughnut Time, agreed to terms to purchase the company from founder Damian Griffiths, with a view of repositioning the brand. ABC also reported yesterday that Doughnut Time Victoria state manager Vanessa Gaddi-Chmielewski emailed workers of the company confirming Griffiths blocked the deal.
“He will not sign the Doughnut Time trademark to [Strachotta],” Gaddi-Chmielewski wrote. “As a result: The entire company will go into liquidation – including the stores that Dan was supposed to take over. The sale has not been completed. Doughnut Time will be put into the hands of appointed liquidators/administrators. We don’t yet know who they will be and what they will decide to do with the company.”
Doughnut Time began as a hole-in-the-wall store in Brisbane’s Fortitude Valley in 2015, rapidly growing to 30 locations before its demise was brought about by high rent costs and allegations of underpayment last month.
