The central Illinois city of Effingham expects to lose more than 40 jobs when Krispy Kreme closes a factory there in December.
City officials say the facility employs 47 people and the doughnut company has said it will lay off workers before mid-December.
Todd Hull, the city's economic development director, says officials are looking for a buyer for the plant.
Winston-Salem, N.C.-based Krispy Kreme Doughnuts Inc. reported a wider-than-expected loss in its second quarter.
The company, which sold its first glazed doughnut in 1937, has been hurt by allegations of misconduct by former management, healthier eating trends and competition from rival Dunkin' Donuts.