Krispy Kreme looks to expand after £25M buy-out
The doughnut retailer, previously owned by investment group, Cheshire and Kent, will aim to increase its number of stores from 45 to 80 over the next four years. It will expand its number of cabinets in retail outlets from 350 to 400.
The deal was led by joint managing directors, Richard Cheshire and Rob Hunt, who were backed by Alcuin Capital, whose other high-profile investments include the Caffe Nero coffee stores.
Shareholding
The new-look firm will be headed by Mark Storey, who will be the new chairman of Krispy Kreme UK, with Cheshire and Hunt obtaining a large shareholding in the business as part of the deal.
Richard Cheshire, joint managing director, said: “We are delighted to bring Alcuin into the Krispy Kreme family in the UK, and look forward to working with Mark Storey and the team going forward.
Krispy Kreme has expanded rapidly in the UK since we launched in 2003, and our current business plan aims to build on this growth. With the support of Alcuin, we plan to achieve this by focusing on our core business of making premium quality doughnuts and coffee, geographically expanding our retail and wholesale operations and providing outstanding career paths for high calibre people.”
Like-minded
Fellow managing director, Rob Hunt praised Alcuin for its “like-minded” view of the future of the company.
He said: “Alcuin is an ideal partner, with substantial expertise in supporting rapidly growing businesses with strong management teams. We look forward to working with the team to deliver the Krispy Kreme experience to more people across the UK over the coming years.”
Krispy Kreme was launched in the UK through a franchise agreement with the parent company in America. Last year the company reported sales of £33.4M, a 12.6% increase from 2009, said Hunt.
