In today’s economy, even sweet empires like Krispy Kreme aren’t immune to financial pressure.

The beloved doughnut chain has officially cut financial ties with Insomnia Cookies as part of a broader strategy to deal with its growing debt.

The move involves selling off its remaining shares in Insomnia Cookies for a cool $75 million—money that will now go toward easing the company’s $1 billion debt load.

Saying Goodbye to Insomnia Cookies

Krispy Kreme confirmed on Tuesday that it sold its remaining stake in Insomnia Cookies back to the company and its other shareholders.

While the two brands had once worked closely—Krispy Kreme originally bought a majority stake in 2018—this decision marks the end of that chapter.

CEO Josh Charlesworth emphasized that the deal is all about stabilizing the company’s finances.

“We continue to take swift, decisive action to de-leverage our balance sheet and drive sustainable, profitable growth,” he said in a statement.

Refocusing on Donuts and International Expansion

According to Charlesworth, this isn’t just about clearing debt.

It’s also about narrowing the company’s focus—mainly on expanding Krispy Kreme’s presence in the U.S. and boosting growth in its international franchise business.

The brand still has a massive footprint, with over 14,000 locations worldwide, and there’s no word of closures.

However, financial concerns are definitely present—the company reported a $33.4 million loss in net sales during the first quarter of this year.

A Sweet Partnership That Helped Insomnia Grow

Krispy Kreme’s partnership with Insomnia Cookies started back in 2018 when they bought a majority stake for $175 million.

That move gave Insomnia Cookies the financial push it needed to expand globally and triple its revenue.

Last year, Krispy Kreme sold 66% of its ownership to Verlinvest and Mistral Equity Partners for $350 million.

That partial exit was already a sign the doughnut giant was looking to reshape its financial path.

Other Big Business Moves in the Food World

Krispy Kreme isn’t alone in reevaluating its strategy. Many well-known restaurant chains have been restructuring or changing hands lately.

Earlier this month, Roark Capital acquired Dave’s Hot Chicken for $1 billion.

Meanwhile, Jersey Mike’s founder, Peter Cancro, joined the billionaire ranks after Blackstone bought the chain for $8 billion.

Even retail hasn’t been spared—Big Lots was rescued late last year with a $495 million acquisition deal from Variety Wholesalers.

No Plans to Go Private—Yet

Despite these major shakeups and financial pressures, Krispy Kreme hasn’t indicated any plans to go private.

The company is also pulling back in other areas—it recently paused its partnership with McDonald’s, which had been testing Krispy Kreme donuts in over 2,400 locations.

They also ended dividend payouts, a move expected to save $6 million annually.

Insomnia Still Going Strong

As for Insomnia Cookies? The cookie company is still thriving, with over 300 locations, most of them in the U.S. It’s come a long way from its beginnings in a college dorm room back in 2003.

DailyMail.com reached out to them for comment, but no response has been shared yet.