Doughnut Time enters liquidation, closes all stores

doughnut timeOne week after entering administration, Doughnut Time is now in liquidation after closing all of its stores.

Michael Caspaney – principal at the company’s appointed liquidators and receivers Menzies Advisory – confirmed to Inside Retail that after most of the food firm’s stores were closed in January and February, the remaining locations closed last week.

It had previously been reported that Dan Strachotta, who was formerly the chief executive of the business, had agreed to terms to purchase the company from founder Damian Griffiths, with a few of repositioning the brand.

“There appeared to be a possible deal with the CEO for him to buy some of the profitable stores but that fell over late last week,” said Caspaney

“At this early stage there could be up to 300 employees owed wages and entitlements from 23 different sites in Queensland, NSW and Victoria.”

This morning the ABC reported that Doughnut Time Victoria state manager Vanessa Gaddi-Chmielewski emailed workers of the company confirming Griffiths had blocked the deal

“He will not sign the Doughnut Time trademark to Dan,” Gaddi-Chmielewski wrote.

“As a result: The entire company will go into liquidation – including the stores that Dan was supposed to take over. The sale has not been completed. Doughnut Time will be put into the hands of appointed liquidators/administrators. We don’t yet know who they will be and what they will decide to do with the company.”

Doughnut Time began as a hole-in-the-wall store in Brisbane’s Fortitude Valley in 2015, rapidly growing to 30 locations before its demise was brought about by high rent costs and allegations of underpayment last month.

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.


Comment Manually


Inside Retail Polls

Myer's new chief executive
Is John King the right CEO to lead Myer's turnaround?


    Australia’s independent retail revenue over the past 12 months shows an 18 per cent growth than the global average.

    54 mins ago

    Baby goods retailer's non-executive director to step down.

    6 hours ago

    Driverless grocery stores replace supermarkets, while mail is handled by automated delivery units

    9 hours ago

    FREE NEWS BRIEFS Get breaking news delivered