HONG KONG Oct 27 U.S. chain Krispy Kreme
Doughnuts Inc's KKD.N Hong Kong franchisee has appointed
Briscoe & Wong Ltd as independent financial advisers to help it
find liquidators, as it becomes the latest company in the city to
close amid the global financial crisis.
Briscoe said in a statement on Monday a creditors' meeting
would be held on Nov. 12 to seek liquidators to deal with the
assets of Krispy Kreme Hong Kong and the claims of its employees
It has seven stores in Hong Kong and five will be closed
immediately. The two outlets at the Hong Kong International
Airport will continue to trade until further notice, it said.
"The directors are very disappointed that they have had to
take this action," it said.
Earlier this month, the U.S. sweet treats chain said it
agreed with KKD Lotte Holdings Co to open 35 Krispy Kreme retail
locations over the next four to five years in China's major
cities, including Shanghai, Beijing and Tianjin.
Lotte is Krispy Kreme's franchisee in South Korea and Japan.
Kispy Kreme has struggled in recent years with restatements,
investigations into its past accounting and a decline in doughnut
sales that sent some of its franchisees into bankruptcy.
(Reporting by Alison Leung; Editing by Anne Marie Roantree)