Krispy Kreme goes bust in Hong Kong
Published: Tue, Oct. 28, 2008 12:30AM
Modified Tue, Oct. 28, 2008 03:23AM
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closeWINSTON-SALEM -- The Hong Kong franchisee of Krispy Kreme Doughnuts is going into liquidation two years after starting business.
Five of the seven Hong Kong stores closed Sunday. Two outlets at the city's airport will remain open "as long as possible" for the benefit of creditors, Stephen Briscoe, managing director of liquidator Briscoe & Wong, told Bloomberg News.
"One of the company's difficulties certainly appears to be high rent in various premises in Hong Kong," Briscoe told Bloomberg.
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The Winston-Salem doughnut chain is trying to expand overseas as its sales suffer in the U.S. It recently signed franchise development deals for Turkey, Malaysia and three major cities in China: Shanghai, Beijing and Tianjin. Krispy Kreme said the franchisee had been in operation in Hong Kong for about two years. It said that although it is "disappointed" by this development, its international growth strategy hasn't changed.
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Staff writer John Murawski
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