Carrera Elite
Libra
HDF Supporter
  
Glendale,AZ
Posts: 44,134
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1990 Carrera 23.5 Classic
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Posted: Aug. 13 2006,7:51 am |
Post # 1 |
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Krispy Kreme stores close in Arizona
August 12, 2006
The company’s eight Arizona stores closed Friday after the donut-maker’s franchisee here and in New Mexico filed for bankruptcy.
The closures by Rigel Corp. left as many as 320 employees without a job and the prospect of getting the sugary donuts in supermarkets and gas stations appear dim.
“Krispy Kreme is working with Rigel to access the situation,” said James Golden, Krispy Kreme spokesman, in a prepared statement. “We will continue to be part of the community and remain committed to serving our customers in the best way possible.”
Representatives with Rigel could not be reached for comment. Golden would not say if the stores were losing money or if Rigel principals had other financial difficulties.
Krispy Kreme stores at Arizona Mills and Superstition Springs malls closed along with one at the Promenade on the southeast corner of Frank Lloyd Wright Boulevard and Scottsdale Road.
Two stores in Tucson and one each in Phoenix, Peoria and Avondale also went dark. Two stores in Albuquerque, N.M. also closed.
Golden said he’d heard reports that employees were to be paid Friday, but he could not confirm if that was the case.
Typically an area store pick up a closed store’s delivery routes to grocery stores and gas stations, but because all the region’s stores are closed it appears buying Krispy Kremes anywhere in the Valley is doubtful until the situation is resolved.
Krispy Kreme has had it share of problems with store closings the last few years. In June, the company announced it expects to report revenue of approximately $116 million for the first quarter of fiscal year 2007, which ended April 30, 2006, compared to revenue of approximately $153 million for the first quarter of fiscal 2006.
The company blamed the falling revenue on a decrease in the number of company stores and lower sales to franchisees from its manufacturing and distribution segment.
The once high-flying company began sputtering more than 2 years ago when it said earnings would fall as low-carbohydrate diets took hold. Stores began closing and the company’s CEO left in favor of a turnaround specialist. When that didn’t work, president and CEO Daryl Brewster was brought on in March
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7-02-2026 Three Word Post.....The Next Generation.... (Rep.#20,222) from: GoFastRacer
I try to support small biz whenever possible 
The dad works swing shift at another job, get to the donut shop about 1-2am and starts baking..... 
