It appears that Australians are not eating enough donuts, prompting Krispy Kreme Australia to go into voluntary administration Friday.

Due to sales declines, expensive rents, high distribution costs, and a health-conscious population across the donut franchise’s 50 Australian locations, Krispy Kreme appointed Smith Hancock’s Mike Smith and Peter Hillig as joint voluntary administrators of the company.

“Due to a number of underperforming stores adversely affecting the business, the company was at risk of not meeting its financial obligations if it continued trading under its current model,” the company said in a statement. Krispy Kreme Australia managing director John McGuigan said, “Directors have determined that a restructure is necessary and the appointment of a voluntary administrator is the responsible action in view of the risk of insolvency.”

Krispy Kreme’s life in Australia has been shortlived, with only seven years under its wide belt. The Australian arm was Krispy Kreme’s first attempt to open locations outside of North America. While the donut chain’s sales rose seven percent to $58 million in 2009, profits came in at a measly $62,000 due to trade debts and payables, according to The Australian.

Despite the announcement, McGuigan remains confident there’s still plenty of baking in Krispy Kreme Australia’s future. Donuts will continue to be sold during the one-month administration period. “The directors believe the company's core business, which has a seven-year trading history in Australia, remains strong and that a financially stable company will emerge from the process,” he said.