Several Dunkin Donut Owners File Bankruptcy

Summary: Seven Dunkin Donuts franchisees have filed bankruptcy protection before a court in Nashville, Tennessee, according to Current River Capital LLC (CRC) which is the franchise restaurant’s business partner since 2006.

With the filing of bankruptcy, 108 hourly workers and salaried employees may be laid off, according to Dunkin Donuts.

Just like most businesses in the United States, franchise restaurant Dunkin Donuts is reeling from weak economy as seven of its franchisees have filed bankruptcy on Thursday.

According to reports, franchisees from different locations from the US have filed bankruptcy protection after years of slumping sales and stiff competition from other restaurants.

With the filing of bankruptcy, 108 hourly workers and salaried employees will be affected or may be laid off, according to Current River Capital LLC (CRC) which is Dunkin Donuts’ business partner since 2006.

In a statement, CRC admitted that its having a hard time keeping its finances afloat and said that its assets range up to $500,000 compared to its liabilities which can reach approximately $10 million.

The company also said that its debts from its biggest creditor, CIT Group/Equipment Financing Inc., have reached to $5.4 million.

Meanwhile, the company did not say if it is planning to seek stimulus aid from the government or if it will restructure its business and adopt contingency measure to avoid further financial meltdown.