After the rapid rise of Doughnut Time, now comes the colossal fall: All stores from the popular dessert chain have now closed. Yep, all of them.
Earlier this month, it was announced that Doughnut Time would be scaling back its stores, in the midst of allegations that its staff had not been paid. Still, there was a deal to be struck between company entrepreneur Damian Griffiths and former CEO Dan Strachotta, where some stores would be saved and continue operating. However, Broadsheet has reported that the deal has fallen through, resulting in the closure of all stores and the company going into voluntary administration last Friday.
“Today has been the last day of Doughnut Time,” Victoria state manager Vanessa Gaddi-Chmielewski said in an email to the ABC. “I just received news from Dan [Strachotta] that the deal with the new company has been blocked by Damian. He will not sign the Doughnut Time trademark to Dan. As a result, the entire company will go into liquidation — including the stores that Dan was supposed to take over.”
Troublingly, uncovered emails also reveal that the company owes $200,000 in unpaid wages to workers, who are now expected to claim taxpayer-funded compensation.
Since starting in 2015 in Brisbane, Doughnut Time underwent a massive expansion across the country, serving OTT doughnuts drenched in more toppings than any sweet tooth could handle. We’re sure that many people will be sad to see Doughnut Time go – from now on, you might have to DIY it with servo doughnuts and a packet of M&Ms.
Head image by Miranda Everett
