Krispy Kreme Doughnuts, Inc. has named a new CEO to its company amid a sharp decline in its fourth quarter sales.
Stephen F. Cooper will replace Scott A. Livengood as CEO. Livengood, who retired as chairman of Krispy Kreme’s board of directors, company president, CEO and director, will become a company consultant on an interim basis. Steven G. Panagos has been named the company’s president and COO.
In addition, Cooper is chairman of Kroll Zolfo Copper, LLC (KZC), a firm Krispy Kreme retained to serve as the company’s financial advisor and interim management consultant. Panagos serves as KZC’s managing director.
With the company’s reorganization, Krispy Kreme said that results for its fourth quarter ending Jan. 30 have been and may continue to be significantly impacted by declining sales.
Another factor impacting fourth quarters result is the legal and regulatory issues surrounding the company’s plan to restate earnings incurred during its recent fiscal year (PROMO Xtra Jan. 5). Krispy Kreme announced plans this month to correct errors in its financial reporting amid allegations that the company padded sales by doubling shipments to wholesale customers. KZC plans to work with the company to review whether it should make changes to its operation, which could include possibly consolidating some of its stores.
Meanwhile, James H. Morgan, who served as the company’s director since July 2000 and vice chairman since March 2004, has been elected chairman of Krispy Kreme’s board. Robert L. Strictland, a Krispy Kreme director since 1998, has been elected as the company’s vice chairman.
The Winston-Salem, NC-based company was founded in 1937. Krispy Kreme operates 440 stores across the U.S., Australia, Canada, Mexico and the U.K.
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