Photo: Gecko Studio, Bigstock

Donut Time is closing many of its stores as the franchise’s founder and owner Damian Griffiths collapses under financial pressure.

The entrepreneur had to close some stores to cope with the financial problems. The store had 30 stores when it was at its best in Australia and the UK.

Mr Griffiths is said to have sold the company to former Donut Time CEO and president Dan Strachotta.

Mr Griffiths says he is taking full responsibility for the financial difficulties and his need to sell the company and says he was “expanding too quickly”. He cited one of the reasons he had “too many big ideas and dreams” for the franchise he was expanding across Australia.

The sale of the company will save some Donut Time stores in the country, but many will have to close, leaving employees out of work. Some would still owe money for the hours they worked.

Nearly half of Australia’s Doughtnut Time stores are closing. In the rest of the country, Melbourne will retain three stores in Degraves Street, Chapel Street and Fitzroy, while Brisbane will retain its South Bank and Clayfield Street stores, as well as Mermaid Beach on the Gold Coast.

The store’s sale has not come without controversy, with some employees claiming they owe thousands of dollars. In February, 35 employees at 15 stores said they owed a total of $70,000.

There are allegations that Mr Griffith owes family members money and that is one of the reasons that he is facing bankruptcy and has therefore had to sell the company.

Despite the Australian branch having to close its stores, the chain still has plans to expand and open stores in Dubai and Los Angeles, as well as open more stores in the UK.

Donut Time opened its first Australian store in Brisbane in 2015.

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