Krispy Kreme Doughnuts
got Canadian approval to buy its KremeKo franchisee out of bankruptcy protection.
Winston-Salem, N.C.-based Krispy Kreme said it will now operate the Canadian operations, comprising six stores and a wholesale operation. Since April 2005, KremeKo has been operating under protection of the Companies' Creditors Arrangement Act, the Canadian equivalent of Chapter 11.
"Over the past six months, our Canadian affiliate has made significant progress in reducing costs, increasing efficiencies and improving its overall operating results," said CEO Steve Cooper. "We now have a financially viable business in eastern and central Canada with the potential for solid growth in both the retail and wholesale sides of the business. This restructuring represents an important milestone for Krispy Kreme and we look forward to our continued presence in this market."
On Monday, Krispy Kreme shares rose a penny to $5.40.