Southland Police can breathe a little easier. Great Circle Family Foods, announced that it has emerged from Chapter 11 bankruptcy, completing a business reorganization that will keep its 11 Krispy Kreme locations open and allow it to possibly open more stores.
"Our restructuring has been a long and painful process, but we emerge as a healthy enterprise thanks to the dedication and hard work of our outstanding employees and to the loyalty of our cherished customers," said Roger Glickman, chief executive officer of the Los Angeles-based company.
Company officials said the firm restructured its operations and plans to open more Krispy Kreme outlets in Southern California. It's existing franchises employ about 240 people.
Great Circle was founded in 1998 and by 2004, it operated 31 Krispy Kreme stores in Southern California, along with a distribution system serving wholesale customers. The company employed 1,500 people and generated more than $64 million in revenue.
But with revenues dropping, the company spiked its wholesale distribution business and distribution service and either closed or sold 20 of its locations. The company's debt was restructured, but company officials opted to file Chapter 11 bankruptcy in August 2007.
With its reorganization plans completed, company officials said they would focus on retiring its residual debts and refurbish its stores while looking for possible new locations.
Steve Lineberger, president of U.S. stores for Krispy Kreme Doughnut Corp., said he was pleased with the restructuring work completed by Great Circle.
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"They are a strong operator, and we are very committed to assisting them as they move forward successfully," he said. "Krispy Kreme has developed an increasingly collaborative relationship with our franchisees as we continue our work to improve franchisee service and support levels. There is much that Krispy Kreme and Great Circle Family Foods can continue to learn from each other, and we look forward to being a part of their future."
