…say they are finding it difficult to get supplies. “We don’t know what is happening. We are still fighting to stay here,” said Laframboise.
The Sudbury Star
December 15, 2001
Country Style outlets in Sudbury remain open
Struggling doughnuts and coffee chain is under court-ordered protection from bankruptcy so it can restructure
Star Staff and the Canadian Press
Country Style Food Services Inc. is immediately closing stores under court-ordered protection from bankruptcy so its struggling doughnut and coffee chain can restructure, the company said Friday.
Country Style, the third largest coffee and doughnut franchisor in Canada, said Friday it will continue to operate 150 franchised and corporate locations across Canada as it restructures. The company did not say how many stores it’s shutting down, but the latest number of outlets is less than half the 350 stores the company said earlier this year operated under the Country Style Donuts banner.
Reports this month indicated the company had already closed at least 25 underperforming stores. Country Style also runs 60 fresh baked outlets in Canada operating under the Buns Master name.
Under a “stay order” granted by the Ontario Superior Court under the federal Companies’ Creditors Arrangement Act, “the company will close many of its underperforming outlets immediately and refocus its energies on growing and supporting the remaining healthy core of profitable stores,” Country Style said in a statement.
In Sudbury, two Country Style franchisees who received notice earlier this month that their stores would be closing have been working since then to take over the stores from the company. So far, that has not happened.
In the meantime, Marlene Laframboise, who has operated her Country Style Store on Lasalle Boulevard for more than 13 years, and Don Moore, who opened his store on the Kingsway a year ago, remain open.
However, Laframboise and Moore say they are finding it difficult to get supplies.
“We don’t know what is happening. We are still fighting to stay here,” said Laframboise.
Her lawyer has told her Country Style agrees with the idea, but so far the owner of the property has not been able to negotiate with Country Style to transfer the lease.
“I guess they don’t want to talk, so it is up in the air right now.”
To keep the stores going, Moore and Laframboise said they are scrambling to get supplies.
Other Country Style outlets in the Sudbury are also open, despite events Friday.
Country Style President Pat Gibbons said the firm has “critically examined the performance of all locations. Every store was assessed on its ability to generate consumer traffic, present an inviting and consistent Country Style atmosphere and meet sales objectives.
“The company will continue to operate over 150 strong locations that will ensure our customers receive high quality products an excellent service. These stores will continue to contribute positively to our business, providing the base from which we intend to revitalize Country Style.”
Country Style said its financial performance has deteriorated as a result of an increasing number of poor locations and under-performing franchises.
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