Dozens of staff lose jobs as Doughnut time stores close

THE man behind Brisbane’s Doughnut Time business has spoken out as several stores close their doors, with dozens of jobs lost. “I tried to resolve things ... I can’t keep fighting”.

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DOZENS of Doughnut Time staff have lost their jobs as the snack-food chain’s entrepreneur Damian Griffiths battles heavy financial pressure.

The staff are also seeking money back for overdue pay.

The chain, which sells doughnuts costing up to $8, closed six stores last night and offloaded another seven to a businessman associated with Mr Griffiths.

“I tried to resolve things but I have just run out of money,” Mr Griffiths said in an email.

“I can’t keep fighting.”

Mr Griffiths has not responded to interview requests, preferring to send a statement instead.

Damian Griffiths has apologised to staff who have not been paid. File picture

The trained lawyer had businesses running from the Limes Hotel to Doughnut Time, and only in recent months was talking up an expansion into the UK.

The stores that were closed “could not be sold mostly due to the lease conditions of high rent (and) are not viable”, Mr Griffiths said.

Mr Griffiths apologised to staff “we couldn’t pay”.

“I am trying to sort that out now,” he said.

He promised he would not receive funds from the sale and said it would “go to some way to sorting out back pay”.

The remaining stores were sold for an undisclosed sum to company associated with Dan Strachotta, who was Griffiths’ group chief executive officer.

Mr Strachotta was also sole director of a company that late last year took over Les Bubbles restaurant in Brisbane, buying it from another Griffith’s entity that has since failed.

The Courier-Mail has sought comment from Mr Strachotta, who said he will respond to questions.

The amount of staff gone is not clear but one Doughnut Time worker told The Courier-Mail more than 60 people in Queensland alone have not had their jobs renewed.

Doughnut Time’s reach extended to Melbourne.

The staffer said they had last been paid in late January, and wages were usually put into accounts weekly.

Doughnut Time doughnuts sold for as much as $8, with 30 stores operating at one point.

The staffer was also upset at the sudden job loss.

“That’s not the way you treat staff,” the employee said.

The employee said one problem had been that Doughnut Time had changed doughnuts being hand made from scratch daily to using pre-made material.

“They quality has gone down a lot (and) they kept the same price,” the staffer said.

Customers would walk off disappointed, the staffer said. “There was a considerable drop off” in trade in recent months, the staffer said.

Mr Griffiths also repeated earlier comments that he faced bankruptcy over a loan from relatives.

A shopping centre landlord was also suing for $400,000 on rent on a site in Sydney “that we had to walk out of because it was simply a ghost town”, he said.

He said he accepted responsibility for his mistakes, and he “expanded too quickly”.

Doughnut Time had 30 stores and with Limes, and nightclub Alfred and Constance had 500 staff at its peak, he said.