Krispy Kreme closes 21 stores

Krispy Kreme doughnuts are coming to New Zealand. Photo / Wikimedia Commons

Krispy Kreme Australia has tightened its belt, closing 21 stores across the country.

The restructure follows a review by voluntary administrators and will spell the end for 15 stores in NSW, five in Victoria and one in Queensland. This follows the closure of an additional three stores in the ACT last week.

The restructure would result in the loss of over 200 fulltime, part-time and casual positions.

However, 61 employees have been given jobs in surrounding stores.

As the voluntary admission process continues, 27 Krispy Kreme retail outlets will remain open and trade as usual.

Voluntary administrators were appointed in October after Krispy Kreme directors decided the company might not meet financial obligations. Krispy Kreme also blamed poor sales and high costs.

Baskin Robbins and Cookie Man franchise holder Allied Brands also went into voluntary administration after losing its licence to operate 92 ice-cream stores in Australia.

- AAP