Doughnut Time will go into liquidation with Damian Griffiths refusing to sign over business

AFTER it broke that embattled cult chain Doughnut Time is set to go into liquidation, disgruntled former staff have launched a Go Fund Me page in an attempt to recoup thousands of dollars in unpaid wages.

A GO FUND ME page has been created by former staff of embattled Queensland company Doughnut Time, as workers attempt to recoup thousands of dollars in unpaid wages.

It was revealed in a staff email today that the business, owned by hospitality entrepreneur Damian Griffiths, had gone into voluntary administration and would be liquidated.

Former Doughnut Time staff have launched a Go Fund Me page in an attempt to recoup lost wages. Picture: Richard Walker

It comes after it was reported last week that Griffiths had sold the remaining operating seven Doughnut Time outlets to new chief executive officer, Dan Strachotta.

But an email circulating among staff today claims that the deal had been blocked, and that staff were no longer employed by the company.

Former employee Lotte Pollack shared the Go Fund Me page through social media, saying that she and many other former workers were owed wages.

“One way to help us is to spread the news ... so please support us by donating and sharing this link,” it said.

The Go Fund Me page claims to have been created by former Doughnut Time workers, and has a fundraising goal of $200,000 – the approximate amount reportedly owed to workers.

As of 2pm Wednesday, $330 had been donated.

The page claims that staff had been working long hours without pay in recent weeks, hoping the company would be saved.

Damian Griffiths last week told The Courier-Mail he could not continue to fight his financial battles. Picture: File

EARLIER: DOUGHNUT Time will go into liquidation with founder Damian Griffiths reportedly refusing to sign his trademark business to its pending chief executive officer, a staff email revealed.

The ABC this morning reports that Victoria state manager Vanessa Gaddi-Chmielewski emailed workers of the company saying: “Today has been the last day of Doughnut Time”.

“I just received the news from Dan that the deal with the new company has been blocked by Damian,” the email said.

“He will not sign the Doughnut Time trademark to Dan.

“As a result: The entire company will go into liquidation – including the stores that Dan was supposed to take over. The sale has not been completed. Doughnut Time will be put into the hands of appointed liquidators/administrators. We don’t yet know who they will be and what they will decide to do with the company.”

The Courier-Mail last week reported that dozens of Doughnut Time staff had lost their jobs as Griffiths battled heavy financial pressure.

The chain closed six stores and was to offload another seven to Dan Strachotta, who was Griffiths’ group CEO.

Mr Griffiths told The Courier-Mail he couldn’t keep fighting his financial woes.

“I tried to resolve things but I have just run out of money”.

ASIC published notices state a general meeting of the members of the company was held on Friday, with Michael Caspaney appointed as liquidator.

Mr Caspaney told the ABC that workers with a debt less than three months old should seek compensation from the Fair Entitlements Guarantee.

“The company has cashflow problems and couldn’t pay its employees,” he told ABC.

“That seems to be the main reason for the collapse.”

He also said from his analysis of Doughnut Time’s accounts “there is no money anywhere.”