find the latest legal job
Senior Associate - Litigation & Dispute Resolution
Category: Litigation and Dispute Resolution | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Come work for a firm ranked in Lawyers Weekly Top 25 Attraction Firms
View details
Associate - Workplace Relations & Safety
Category: Industrial Relations and Employment Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Employer of choice · Strong team culture
View details
Freelance Lawyers
Category: Banking and Finance Law | Location: All Perth WA
· Freelance opportunities through Vario from Pinsent Masons
View details
Freelance Lawyers
Category: Other | Location: All Adelaide SA
· • Qualified lawyer with a strong academic background
View details
Freelance Lawyers
Category: Other | Location: All Melbourne VIC
· • Qualified lawyer with a strong academic background
View details
Bakers man burnt by Krispy Kreme

Bakers man burnt by Krispy Kreme

Four years as Baker & McKenzie chairman in Chicago might have given John McGuigan a taste for high calorie donuts, but as Krispy Kreme Australia CEO he wasn't able to trim the fat…

Four years as Baker & McKenzie chairman in Chicago might have given John McGuigan a taste for high calorie donuts, but as Krispy Kreme Australia CEO he wasn't able to trim the fat sufficiently to save it from going into administration.

It was announced yesterday (1 November) that Krispy Kreme Australia has been placed into the hands of administrators.

The donut company, based on the American Krispy Kreme brand, launched in Australia in 2003, with McGuigan appointed CEO and one of the company's major shareholders.

McGuigan left Bakers after 25 years at the firm in 1998, to start the investment and advisory company hunter bay Partners.

Another Bakers alumni, John Atkinson, who was a partner with the firm in Hong Kong and New York, is also a director with Krispy Kreme Australia.

Atkinson was at Bakers for 11 years and is also a director of hunter bay.

Krispy Kreme went into voluntary administration after it revealed it owes $15 million to John Kinghorn, the co-founder of RAMS Home Loans company and a significant investor in the company.

Kinghorn is now the non-executive chairman of RHG Mortgage Corporation Limited, after selling the RAMS brand name to Westpac in November 2007.

McGuigan is also a non-executive director of RHG Limited.

Krispy Kreme has incurred significant financial losses, including posting a $12 million loss in 2008, of which only $62,400 was recouped as a profit last year.

Analysts have cited a weakening retail market, a poor choice of location for many of the company's 50 Australian stores, failure to diversify into more health conscious food products and what the investment website smart company called "a high-cost distribution model", that meant fresh product was delivered to stores daily, contributed to its current financial situation.

On starting in Australia, Krispy Kreme adopted an aggressive marketing and public relations strategy, giving out free donuts at major events such as Tropfest. McGuigan, who acquired the rights to develop the Krispy Kreme donut business in Australia and New Zealand in 2002, was often cited in the press talking about the company.

In 2008 he was pictured in the Daily Telegraph, surrounded by donuts, in relation to a promotion that was offering Krispy Kreme customers the chance to meet their mortgage repayments for six months.

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Bakers man burnt by Krispy Kreme
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Oct 20 2017
Podcast: One of law’s most infamous alumni – in conversation with Julian Morrow
In this episode of The Lawyers Weekly Show, Melissa Coade is joined by The Chaser’s Julian Morrow....
Oct 20 2017
High Court overturns ‘excessive’ anti-protest legislation
Bob Brown’s recent victory in the High Court over the Tasmanian government was a win for fundament...
Oct 20 2017
Changes to Australian citizenship laws blocked
Attempts to beef up the requirements to obtain Australian citizenship were thwarted this week, after...
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...