Another Krispy Kreme Franchise Files For Chapter 11

Law360, New York (August 14, 2006, 12:00 AM EDT) -- The owner of Krispy Kreme Doughnuts Inc. franchises in Arizona and New Mexico owes the parent company around $3.5 million after filing for Chapter 11 bankruptcy protection.

The company, Rigel Corp., closed its 10 stores last week and filed for bankruptcy, according to court filings. The company listed two Krispy Kreme subsidiaries as two of its top three unsecured creditors.

The doughnut maker has suffered from legal troubles and slow sales over the past two years.

In April, a federal bankruptcy judge confirmed the plan of...
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