US doughnut maker and retailer Krispy Kreme has announced that Freedom Rings, its majority-owned subsidiary and franchisee partner in the Philadelphia region, has filed a voluntary petition for Chapter 11 bankruptcy with the Delaware Bankruptcy Court.
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In connection with this petition, Krispy Kreme has agreed to provide funding to Freedom Rings during the restructuring process.
“This is a difficult but necessary process for Freedom Rings and we believe it is in the best interest of the Krispy Kreme brand in the Philadelphia region in the long term,” said Steve Cooper, chief executive officer of Krispy Kreme.
“We believe that this process allows us to continue to serve our customers in the Philadelphia region while simultaneously restructuring our local operations,” he added.
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By GlobalData
