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MONTANA MILLS SOLD TO COMPANY IN MONTANA

Montana Mills, the specialty bread store that Krispy Kreme bought in 2003 and closed a year later, is being sold to Great Harvest, a Dillon, Mont.-based company of franchised bread stores.

The deal involves eight stores in upstate New York, including one in East Aurora and another in Clarence.

Terms of the sale were not disclosed.

Great Harvest has 210 locations in 40 states. The company said it is seeking franchise owners for the Montana Mills stores, which will be rebranded as Great Harvest stores.

"Like Montana Mills, Great Harvest bakes our breads from scratch using the freshest ingredients without preservatives, added oils, dairy or fats," said Great Harvest President and CEO Mike Ferretti, in a release announcing the deal. "We grind our wheat in our stores every day to ensure phenomenal quality, freshness and great taste."

Montana Mills was started in 1996 in Rochester by Gene O'Donovan and his wife, and grew to 40 stores. Krispy Kreme bought the business in April, 2003 for $39 million, but closed the chain the following May, blaming the low-carb diet craze for reduced sales.