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Area Dunkin' operator heads to bankruptcy

Thu, Jul 9th 2009 12:00 am
By JAMES FINK
Business First

While the parent company of most Dunkin' Donuts outlets in Western New York has filed for bankruptcy protection, it remains unclear how the action will impact the chain's local operations.

Kainos Partners Holding Co. LLC of Greer, S.C., filed for Chapter 11 bankruptcy protection in Delaware on July 6, citing rising operational costs and diminished sales. Kainos operates 56 Dunkin' Donut locations in New York state, South Carolina and Nevada, including 20 in the Buffalo Niagara region and a donut bakery in Cheektowaga.

Officials from Kainos could not be reached for comment.

The company in 2007 pledged to open more than 40 local outlets as it hoped to re-establish the Dunkin' Donut brand in the Buffalo Niagara region, an area that is dominated by Tim Hortons Coffee and recently saw the introduction of the Canadian-based Coffee Culture.

Kainos Partners earlier this year fired its chief financial officer after it was alleged that he used more than $420,000 in company assets for personal use.