After several years struggling to right its ship, Krispy Kreme has spent this year trying to convince critics that its future is bright. The recent announcement from Great Circle Family Foods LLC, a Los Angeles-based Krispy Kreme franchisee, about its successful bankruptcy restructuring, could be another sign that the company may have indeed turned the corner.
Great Circle announced in a news release that the U.S. Bankruptcy Court for the Central District of California has confirmed its Second Amended Chapter 11 Plan of Reorganization. In conjunction with the plan, steps Great Circle has taken include:
- Substantially restructured its operations and balance sheet
- Assured the ongoing operation of Southern California's 11 Krispy Kreme Doughnuts locations
- Preserved approximately 240 jobs in Southern California
- Forged a renewed, collaborative and sustainable relationship with its franchisor
- Established a solid platform from which to further penetrate its market
"We are very pleased that our franchise partner Great Circle Family Foods has emerged from Chapter 11," said Steve Lineberger, president of U.S. stores for Krispy Kreme Doughnut Corp. "They are a strong operator, and we are very committed to assisting them as they move forward successfully."
