Tom Hals of Rueters reports at Forbes.com that an operator of 56 Dunkin’ Donuts locations filed for bankruptcy on Monday, the latest in a growing list of franchise operators to seek court protection due to a steep drop-off in sales.
Kainos Partners Holding Company LLC of Greer, South Carolina, operates the donut-and-coffee franchises in New York, South Carolina and Nevada, with eight more under construction, according to court documents. It employs 700.
The company said the recession has put its customers under extreme financial stress while food costs have risen.
Kainos Partners joins a growing list of struggling operators of Dunkin’ Donuts, which has 15,000 locations worldwide. Last month, the operator of several Nashville-area Dunkin’ Donuts and the largest Dunkin’ Donuts franchise operator on the west coast of Florida both filed for bankruptcy.
Dunkin’ Donuts is a subsidiary of Dunkin’ Brands Inc, which is owned by Bain Capital, The Carlyle Group and Thomas H. Lee Partners.
“Dunkin’ Donuts franchisee dips into bankruptcy” This report by by Matt Glynn of the Buffalo News offers much more detail regarding Kainos’ plan to close four area stores while keeping 13 open in the Buffalo area.
This article from Buffalo First puts a more positive spin on the announcement: Dunkin’ still plans big in Buffalo area
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