September 18, 2007
A Dearth of Donuts in Chicago
Sweet Traditions LLC, the Krispy Kreme franchisee in the Chicago area, has filed a voluntary petition for Chapter 11 bankruptcy reorganization. According to this article, the company plans to close about half of its 15 Chicago-area stores as it reorganizes. According to Sweet Traditions, a lease dispute, as well as some of the corporate practices at franchisor Krispy Kreme Doughnuts, Inc. (including a one-time requirement that franchisees build spacious and costly factory stores), are to blame for the franchisee’s financial troubles.