“They’re shutting me down right now,” said a troubled Sam Dawood, owner of the franchise at 367 Yonge St., just north of Little Avenue. “I couldn’t do anything.” “I’m just trying to pick up the pieces take my stuff.”
The Barrie Examiner
December 15, 2001
Doughnut shops dunked
Company closes two Country Style Donuts
TORONTO (CP/Staff) – Receivers moved quickly Friday, shutting down at least two Country Style Donuts stores in Barrie after the company sought protection from bankruptcy.
“They’re shutting me down right now,” said a troubled Sam Dawood, owner of the franchise at 367 Yonge St., just north of Little Avenue. “I couldn’t do anything.”
“I’m just trying to pick up the pieces take my stuff.”
The chain has been closing stores for about a week, prior to Friday’s court-ordered protection. Friday’s closures followed the court order for the struggling coffee shop chain to restructure.
Word had reached Dawood that receivers had shut the store at the Kozlov Centre and three hours later when he saw them approach his store he locked the doors, but it was hopeless.
He was shown the court order and had to let them in.
Dawood said he bought the franchise a year and a half ago for $300,000. He said he still owes $200,000 and will be forced to seek bankruptcy with the closure.
Dawood has owned a successful Country Style store in Bradford with two other partners since 1998. That store hasn’t been affected by this latest move.
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.
“We have critically examined the performance of all locations,” company president Pat Gibbons said.
“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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