Krispy Kreme chief operating officer resigns mid-September

Last month, it disclosed that the Securities and Exchange Commission had launched an informal inquiry into the way it has accounted for franchise buybacks, along with the circumstances surrounding the company's recent profit warning.

National Post
August 17, 2004

Krispy Kreme chief operating officer resigns effective mid-September
Canadian Press

BOSTON (AP) - Krispy Kreme Doughnuts Inc. said Monday its chief operating officer is resigning, effective in mid-September to pursue another opportunity in northern California.

Scott Livengood, Krispy Kreme's chief executive officer, will assume the COO's responsibilities from John W. Tate, a company spokeswoman said. Krispy Kreme spokeswoman declined to comment on market speculation that Tate would join Restoration Hardware Inc., which is based in Corte Madera, Calif.

Tate's departure comes at a critical juncture for Krispy Kreme.

Following several years of torrid growth, the Winston-Salem, N.C.-based chain has stumbled in recent months, reporting a slowdown in sales and its first-ever profit warning.

Last month, it disclosed that the Securities and Exchange Commission had launched an informal inquiry into the way it has accounted for franchise buybacks, along with the circumstances surrounding the company's recent profit warning.

Tate, 53, joined Krispy Kreme in 2000 as its chief financial officer, and was named chief operating officer in 2002. Before that, he was chief financial officer at both Williams-Sonoma Inc. and Dole Food Co.

Krispy Kreme stock, which hit nearly $50 US last year, closed on the New York Stock Exchange Monday at $13.04, down 53 cents, or 3.9 per cent.

© The Canadian Press 2004


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