"The chain, which replaced its chief executive, Scott A. Livengood, in January with a turnaround specialist, Stephen F. Cooper, said earlier this month that it needed additional credit by the end of March to stay in business."
A long-time North Carolina success, Krispy Kreme got lured by the bright lights of the big city and the result may be a "going-out-of-business sale." At one point in th elast year, Krispy Kreme traded for about $40 a share and the late quote was $5.54. Things seem to have tumbled down in a hurry.
The Motley Fool says:
Before you know it, Krispy Kreme is going to be blamed for everything from global warming to the 1919 Black Sox scandal. It certainly feels that way after it seems as if every downtick in the troubled doughnut maker's share price invites a new depressing revelation. This week it was word that the Feds were moving in, interviewing Krispy Kreme officers and former employees in an investigation spearheaded by the U.S. Attorney's office for the Southern District of New York.here. Doughnuts with a side helping of bad karma?
Will it uncover that the company's been hoarding uranium or plotting alongside Austin Powers nemesis Dr. Evil to take over the world? Nothing should surprise investors anymore. While Krispy Kreme still has time, creditors willing, to revive its tarnished brand, it's going to have to start producing some good news to turn that vicious sentiment tide.