Des Peres, Mo. – A Des Peres company that operates Krispy Kreme franchises has filed for bankruptcy and plans to close half of its stores; most of those closures will be in the Chicago area.
The company is called Sweet Traditions; it blames a lease dispute and a lack of new products from Krispy Kreme for its financial problems. It filed for bankruptcy in Bankruptcy Court in St. Louis.
Sweet Traditions also plans to cut more than 100 jobs of the 600 it has. It has five locations in the St. Louis area, in Ferguson, South County, Fenton, O'Fallon (Mo.) and Fairview Heights (IL)
Sweet Traditions operates 15 locations in the Chicago area.
"It's business as usual," said Laura Schlegel, president of Sweet Traditions. "We will retain the franchise for Krispy Kreme in eastern Missouri, Illinois and northwest Indiana."
Krispy Kreme is experimenting with ice cream, which is being tested at stores in Peoria, Ill., and Bloomington, Ill., Schlegel said. "It's doing very well," she said.