Five Krispy Kreme Doughnuts, Inc. executives have resigned and one retired this month after a report released from a special committee of independent directors said the officers should be discharged from the company.
The six executives, who were unnamed, include four senior vice presidents who worked in the company’s operations, finance, business development and manufacturing and distribution departments.
Krispy Kreme would not release the executives’ identities or the reasons for their discharge. The company plans to fill the vacancies with existing personnel, the company said in a statement.
Last year, Krispy Kreme formed a special committee of independent directors to examine whether earnings should be restated amid allegations that the company padded sales by doubling shipments to wholesale customers. The Winston-Salem, NC-based company is under investigation by the Securities and Exchange Commission.
In addition, a number of shareholder lawsuits have been consolidated against the company alleging that the company issued false and misleading statements, including false financial results.”
The special committee is continuing its investigation, and Krispy Kreme is fully cooperating with the U.S. Attorney’s Office for the Southern District of New York and the SEC in the investigations, the company said in a statement.
