Krispy Kreme Hong Kong, the city's franchisee of the American doughnut chain, is closing its seven outlets two years after it first opened, reflecting the toll the financial crisis continues to take on the retail sector.
Five of the chain's stores did not open yesterday as its financial adviser said the company was in the process of putting the company into voluntary liquidation.
The chain's two airport outlets, which remained open, would continue to operate until further notice, Briscoe & Wong, the adviser, said.
Stephen Briscoe, the adviser's managing director, said yesterday that closing the business was the best option for both its employees and creditors.
He also admitted that salaries for this month had not been paid.
A spokeswoman for the Labour Department said about a dozen employees had contacted the department to seek help. The company has about 100 employees.