Krispy Kreme Australia will close down 21 stores across the country (15 stores in NSW, five in Victoria and one in Queensland) as part of restructuring efforts to meet financial obligations.

The said restructuring would result in the loss of 15 full-time positions, as well as 142 part-time and 44 casual jobs, the company said in a statement on Wednesday.

The company said some 21 stores will remain open and some of its 61 employees have been given jobs in surrounding stores.

In October, voluntary administrators were designated after Krispy Kreme directors decided to alter the company's current operations as they might not meet financial obligations. The company said low sales and high operational costs are the main causes that led to their downfall.

Other food retailers also felt the financial pinch as Baskin and Robbins and Cookie Man lost the franchise to operate 92 ice cream stores in Australia.