All Doughnut Time stores will shut shop after the sale the doughnut chain fell over at the last minute.
Last week it was reported the chain will would be sold to the company’s former CEO – but half of the remaining stores would close.
Last night the ABC reported the sale had fallen over at the last minute.
Doughnut Time went into voluntary administration last Friday – after claims the founder and Director Damian Griffiths blocked the sale to Dan Strachotta.
The company’s workers are owed an estimated $200,000 in unpaid wages and have not been communicated with.
Workers will now seek compensation from the Fair Entitlements Guarantee, which is an Australian taxpayer funded fund to help people who have lost their job because of an employer’s liquidation or bankruptcy.