Doughnut Time forced to close stores across the country, leaves employees without weeks of pay

FORMER employees have hit out at dessert chain Doughnut Time, saying they’ve been left thousands of dollars out of pocket and without superannuation payments.

THE sugar high that fuelled the rise of dessert empire Doughnut Time has come crashing back down to earth.

The chain that flogged calorie-ridden creations in the shape of oversized doughnuts has started closing half of their Australian stores, after entrepreneur and owner Damian Griffiths was forced to sell up shop.

According to Broadsheet, Mr Griffiths finalised the sale of Doughnut Time to the company’s former CEO and managing director Dan Strachotta this month.

But the shift in ownership has left dozens of employees outraged, without a job and owed thousands of dollars in wages and superannuation contributions.

#itsnotalwaysagoodtime: A sign outside the Queen Victoria Building store in Sydney says employees haven't been paid in weeks. Picture: Emily Kula

Former employee Chris Boucher, who was the manager of the Manly Doughnut Time store since October 2017, said he was personally owed $5000 in wages.

“Other employees are owed around $1500- $5000 in unpaid work, and we haven’t been paid superannuation either,” the 31-year-old told news.com.au.

Mr Boucher, who claims he was locked out of the Manly store just three weeks after signing a full-time contract with Doughnut Time, said there’d been a rental dispute between former CEO Mr Griffiths and the landlord, and he was forced to collect shifts in other Sydney stores.

“I was only offered two shifts a week, and I was employed to work 38 hours,” he said.

“When we were locked out of the Manly store, my Mac laptop was left inside. The landlord wouldn’t release items inside until rental fees were paid.

“Damien Griffiths said he would pay me for the laptop, but I am still waiting for that.”

Damian Griffiths has been forced to sell Doughnut Time to former CEO and managing director Dan Strachotta. Picture: Mark Calleja.

At it’s peak — Doughnut Time employed around 500 staff across 30 stores in Australia and the United Kingdom.

Mr Boucher said wage payments started to slow down in November, with weekly deposits getting “later and later” towards the close of 2017.

“We carried on working, even though we weren’t getting paid because we had in writing that we would be paid up to date [eventually],” Mr Boucher said.

Laleh Bagheri, who started working for Doughnut Time in June at both the Bondi and Surry Hills store, said she was never paid superannuation and hadn’t received wages in weeks.

Former employees of Doughnut Time say they haven’t been paid in weeks.

Mr Griffiths told Broadsheet that he expanded the company too quickly, and that he accepts the “blame” for current failings.

“I guess I had too many big ideas and dreams when I started the development of Limes [Hotel], [Alfred & Constance] and then expanded Doughnut Time around Australia,” he said.

While the deal will save some stores across the country, many have been forced to close their doors.

“I tried to resolve things but I have just run out of money,” Mr Griffiths said in an email to The Courier-Mail. “I can’t keep fighting.”

Doughnut Time has hit financial ruins.

The deal with Mr Strachotta means that almost half of the stores in Australia will be closed down, with Sydney keeping just one doughnut shop in Newtown. Brisbane will have its South Bank and Clayfield stores kept open, as well as the Mermaid Beach’s store on the Gold Coast. Melbourne will keep its Degraves Street, Fitzroy and Chapel Street shopfronts.

In February, as many as 35 workers across the company’s 15 Brisbane, Melbourne, Sydney and Gold Coast stores claimed they were owed more than $70,000 in pay.

At the time, staff claimed they are owed thousands of dollars for unpaid shifts, with some staff missing up to three weeks’ pay.

Employees claim they’ve been left out of pocket by Doughnut Time. Picture: Troy Snook

At the time of the staff dispute, Mr Griffiths faced bankruptcy for reportedly owing relatives money.

In a statement to news.com.au, a spokesman for the Fair Work Ombudsman said a complaint had been received from both NSW and Queensland.

“I can confirm that the FWO is currently conducting inquiries in relation to Doughnut Time,” the spokesman wrote.

News.com.au has attempted to contact the new CEO, Dan Strachotta for comment.

Originally published as Doughnut Time forced to close stores across the country, leaves employees without weeks of pay