Krispy Kreme Says KremeKo to Restructure
15.09.2009, 18:02
Krispy Kreme Says KremeKo Operations in Canada to Restructure; Company to Provide Financing
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WINSTON-SALEM, N.C. (AP) -- Krispy Kreme Doughnuts Inc. on Friday said KremeKo Inc. filed for a restructuring with the Ontario Superior Court of Justice. The doughnut shop operator, which has seen its own business decline in the past year, holds a 40.6 percent stake in KremeKo
The company said it will provide debtor-in-possession financing for KremeKo during the restructuring process. The court also approved a chief restructuring officer to manage KremeKo's operations, Krispy Kreme said.
"This is a difficult but necessary process for KremeKo, and we believe it is in the best interest of the Krispy Kreme brand in Canada in the long term," said Steve Cooper, Krispy Kreme chief executive, in a statement. "We believe that this process allows us to continue to serve customers in KremeKo's markets while simultaneously restructuring our Canadian operations on a sound basis so that we can continue to grow."
Krispy Kreme has been run by a corporate turnaround firm since the ouster of former Chief Executive Scott A. Livengood in January. The company's stock has tumbled amid accounting problems and a federal probe.
Shares of Krispy Kreme fell 19 cents, or 2.5 percent, to close at $7.56 on the New York Stock Exchange.