Doughnut Time Is Officially Over: Company Goes Into Liquidation With No Stores Remaining Open
The news comes as a shock to workers, who were promised jobs would be saved.
Well, it turns out that no Doughnut Time stores will remain open at all, after a deal to sell the surviving stores collapsed last week. The company went into liquidation on Friday, and that will be the end of the (briefly) enormously popular doughnut franchise
The news came as a surprise to Doughnut Time employees, who were told last week that company CEO Dan Strachotta had bought the seven remaining stores, and would try to save as many jobs as possible. On Friday, employees received a message from middle management reporting that the deal to save the company had been blocked, but as neither the owner nor the CEO had confirmed this, the situation remained uncertain.
The ABC discovered this morning, however, that ASIC records show the company did indeed go into external administration and appoint a liquidator last Friday. If the message employees received on Friday is accurate, it appears that the sale deal fell apart due to founder Damian Griffiths’ refusal to sign the company trademark over to the new owner.
Neither Damian Griffiths nor CEO and would-be buyer Dan Strachotta have responded to requests for comment from multiple publications. A former Doughnut Time employee, who requested anonymity, told Junkee that Strachotta hung up on him when he tried to call him for further information.
The company’s liquidation means that employees who were promised jobs in the remaining stores are now unemployed. As for the many workers who are still owed wages and superannuation, those who are Australian citizens or permanent residents will be able to seek compensation from the Fair Entitlements Guarantee (FEG), a government fund for workers whose employer goes into liquidation.
Many of Doughnut Time’s employees were not Australian citizens, however. Several of the workers who spoke to Junkee when we first reported on Doughnut Time’s collapse were international students or on temporary migrant visas. It is unclear whether these workers will be able to obtain the money owed to them, as they are not entitled to FEG, and Doughnut Time’s liquidator told the ABC that “there is no money anywhere” in what remains of Doughnut Time.
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Feature image via Moira Cully on Twitter