THE Hong Kong franchise of Krispy Kreme Doughnuts Inc, the second-largest US doughnut chain, is going into liquidation two years after opening, adding to the list of retailers going bankrupt in the city.

Five of the seven Hong Kong stores closed last night, with the two outlets at the city's airport to remain open "as long as possible," for the benefit of creditors, said Stephen Briscoe, managing director of liquidator Briscoe & Wong.

"One of the company's difficulties certainly appears to be high rent in various premises in Hong Kong," Briscoe said by phone from Hong Kong yesterday. "The directors tried to find a purchaser in the past three to four months."

Hong Kong's economic growth slowed in the third quarter and retail sales expanded more slowly in August. 3-D Gold Jewellery Holdings Ltd, clothing retailer U-Right International Holdings Ltd and electronics chain Tai Lin Radio Service Ltd have also entered liquidation this month.