By Matt Glynn

Kainos Partners, a Dunkin' Donuts franchisee that has made a push into the region over the past few years, has filed for Chapter 11 bankruptcy protection in Delaware.

The South Carolina-based franchisee operates a total of 56 stores in New York state, South Carolina and Nevada. It employs 700 people, 560 of whom are part-time workers. The stores are continuing to operate during the restructuring process.

Kainos opened its first local Dunkin' Donuts stores in 2006, joining other franchisees of the chain that operate here. Not all area Dunkin' Donuts stores are covered by the bankruptcy; Kainos operates nearly 20 of the region's stores.

In filing for bankruptcy, Kainos cited the economic downturn resulting in shrinking consumer spending in the restaurant industry. It also said that a doughnut manufacturing center it opened in Cheektowaga has been a ?major cash drain on Kainos since its inception.?

Spotted here