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.
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