The Krispy Kreme doughnut chain has entered voluntary administration because of poor sales at some stores.

The locally owned Australian arm of Krispy Kreme has 50 sites across the east coast that employ 660 staff.

The Iced Dough Vo, a tribute to the famed Iced VoVo and part of a so-called 'Fair Dinkum' range of Krispy Kreme offerings that were designed to lure Australians. The attempt appears to have failed.

The company has confirmed accounting firm Smith Hancock will launch a month-long restructure that could result in lay-offs. Stores are expected to remain open while the restructure is under way.

"Krispy Kreme has excellent brand recognition and good turnover and profitability in its better stores," director John McGuigan said in a statement.