KTVN Channel 2 - Reno Tahoe News Weather, Video - Gas Prices Shut Down Reno Krispy Kreme Permanently
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The state's not the only one facing financial problems, Krispy Kreme Doughnuts shut down its Reno store Thursday leaving 25 people without a job.
Employees arrived at work just after 6am to find a sign stating, "we apologize for any inconvenience." "Never worked at a store where they just close up so, usually they give you a little notice," says former employee Don Dinius.
The company's district manager who flew up from Las Vegas, wouldn't say why they didn't give employees more notice. He said the company's been restructuring and the rising cost of fuel made it impossible to keep the Reno store open.
In fact, we're told deliveries to stores like Save Mart and 7-11 are what make Krispy Kreme money. "With our business model, wholesale delivery is a big chunk of our business and fuel has been really tough on us," says Jason Lucero.
But financially Krispy Kreme's been in trouble for awhile now. The CEO brought in to lead the company through an accounting scandal and declining sales stepped down in January.
The company says they're not ruling out one day returning to the Reno market. In fact after pulling out of Arizona two years ago, a new store opened there just week.
