In a move that’s getting a not-so-sweet reaction from many Texans, Texas donut merchant Shipley will be moving ownership to the West Coast.
Shipley Do-Nuts, the Houston-based institution known for sweetening mornings across the Lone Star State since 1936, has been sold to a California private equity firm. The Beverly Hills-based Levine Leichtman Capital Partners announced this week it has acquired the iconic brand from Austin-based Peak Rock Capital.
“We are excited to partner with [CEO Flynn Decker] and the outstanding Shipley management team, who have been executing on a successful growth strategy,” said Matthew Frankel, Managing Partner of LLCP.
“Together, we see a tremendous opportunity to build on this foundation by expanding unit count even further to capture the substantial whitespace and driving strong same-store sales growth.”
With more than 375 locations in 14 states, Shipley bills itself as the nation’s largest donut and kolache brand. But its Texas roots run deep, making the sale tough to swallow for many longtime fans.
The deal is reminiscent of the 2019 sale of Texas-staple fast food joint Whataburger to a Chicago investment group, a move that sparked a backlash that still simmers.
Now, with another homegrown favorite being boxed up and shipped out, critics are once again sounding the alarm.
In a response on X, U.S. Rep. Chip Roy (R–TX) said he is “sick of this crap.”
“Tax policy should be modified away from the paper-pushers and toward the families and people who sweat it out and know a community. And yes I know the arguments against that position … and I don’t care.”
While the terms of the Shipley deal weren’t disclosed, it raises familiar questions: Will the new owners preserve the recipe, or try to cut corners? Will Texas lose more than just another business headquarters?
For now, the company says the donuts will remain the same. Many Texans, however, are left wondering how many more local institutions will be dunked into the out-of-state private equity pipeline.
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