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Krispy Kreme Sells Japan Assets for Debt Reduction
24 Dec, 2025
Summary
- Krispy Kreme sold 89 stores in Japan for $65 million.
- Proceeds will be used to pay down approximately $906 million in debt.
- This refranchising deal aims to deleverage the balance sheet as a priority.
Krispy Kreme has divested its Japanese operations, including 89 stores and 300 touchpoints, for $65 million. This refranchising transaction with Japanese investment firm Unison Capital is a key step in the company's debt reduction strategy. The funds generated will directly contribute to lowering Krispy Kreme's considerable long-term debt, which exceeds $906 million.
The company's CEO, Josh Charlesworth, emphasized deleveraging the balance sheet as the top priority for its turnaround efforts. Refranchising international markets to find experienced partners is the initial phase of this strategy. Krispy Kreme is exploring an asset-light model for its global operations, potentially leading to further international divestitures.
This move follows a previous $200 million sale of Insomnia Cookies to alleviate debt. Despite revenue dips, Krispy Kreme maintains sufficient liquidity, with its bank leverage ratio at 4.5x, remaining below the 5x limit in its credit facility. The company is focusing on more efficient use of existing assets to boost margins.
