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Krispy Kreme announces layoffs
Charlotte Business Journal ^ | Tuesday, February 8

Posted on 02/08/2005 2:50:16 PM PST by Willie Green

For education and discussion only. Not for commercial use.

Krispy Kreme Doughnuts Inc. is slashing its payroll by 25%. The number of jobs to be cut was not released by the company, but layoffs will affect employees in its corporate, mix plant, equipment manufacturing and distribution facilities.

The layoffs are the first significant move by Stephen Cooper, who was hired last month as chief executive. Cooper is chairman at turnaround specialist Kroll Zolfo Cooper.

The company (NYSE:KKD) says the cutbacks will result in annual pretax savings of $7.4 million and a cash restructuring charge of $600,000 in its first quarter.

The Winston-Salem-based doughnut manufacturer, whose shares have dropped from $40 in March to less than $8, has also divested a corporate airplane. Krispy Kreme says the move will result in annual pre-tax savings of $3 million and a cash charge of $300,000 in its first quarter.

Krispy Kreme has been investigated by the Securities and Exchange Commission regarding its accounting for franchise buybacks and its earnings outlooks. The company also faces shareholder lawsuits.


TOPICS: Business/Economy; Culture/Society
KEYWORDS: carbs; donuts; eeyore; joebtfsplk; krispykreme; layoffs; overhyped; thebusheconomy
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1 posted on 02/08/2005 2:50:16 PM PST by Willie Green
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To: Willie Green

You know their donuts aren't exactly OUTTA this world for the price they ask for a doz. I think they are pretty expensive for 12 donuts. Besides, as much as I love sweets, that's one place I try to avoid...:(
My waist line will someday thank me!


2 posted on 02/08/2005 2:53:22 PM PST by RoseofTexas
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To: Willie Green

The product is not that good and they not only over-saturated their franchises, but they also went into the grocery stores to provide a stale donuts there as well.

This story is no surprise to me at all.


3 posted on 02/08/2005 2:55:19 PM PST by A CA Guy (God Bless America, God bless and keep safe our fighting men and women.)
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To: Willie Green

Lent starts tomorrow. :-)


4 posted on 02/08/2005 2:55:41 PM PST by kellynla (U.S.M.C. 1st Battalion,5th Marine Regiment, 1st Marine Div. Viet Nam 69&70 Semper Fi)
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To: Willie Green; LowCountryJoe; 1rudeboy; Poohbah
Damn this corporation for outsourcing donuts to China.

Once we lose these high paying jobs, we'll lose that frying technology.

We'll be wide open to attack by greasy Chinese teenagers asking if we want a sample.

5 posted on 02/08/2005 2:56:10 PM PST by Toddsterpatriot (Protectionism is economic ignorance!)
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To: Willie Green

Hmm, you'd think Micheal Moore would keep them in business...


6 posted on 02/08/2005 2:58:07 PM PST by Trampled by Lambs ("Making Al Gore regret inventing the internet, one post at a time")
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To: Toddsterpatriot

never mind the lost technology (Just how DO they get the holes in the donuts..)


7 posted on 02/08/2005 2:59:06 PM PST by small voice in the wilderness (Quick, act casual. If they sense scorn and ridicule, they'll flee..)
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To: A CA Guy

A friend in Seattle told me that when KK opened their first store in the city, there were lines of customers going out the door and around the block.

Today, nothing. The hype has evaporated.

I tried my first "classic" KK doughnut about 6 years ago during a trip to D.C. I thought it was pretty good then, but I must admit now that their products are kind of nasty and gross, as well as being riddled with fat grams.

The cost of the darned things also is high.


8 posted on 02/08/2005 3:00:26 PM PST by LiveFree99
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To: Willie Green

Take a flying leap at a rolling donut?


9 posted on 02/08/2005 3:01:00 PM PST by manic4organic (We won. Get over it.)
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To: A CA Guy

I beg to differ on the quality of there product, but on the hand they are over priced and you can tell the recession is over when donut businesses start losing money.


10 posted on 02/08/2005 3:02:19 PM PST by aft_lizard (This space waiting for a post election epiphany)
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To: aft_lizard
I beg to differ on the quality of there product, but on the hand they are over priced and you can tell the recession is over when donut businesses start losing money.

I don't get the rationale. All their profit margin is in providing yummy leftover donuts in the kitchen after corporate meetings.

11 posted on 02/08/2005 3:05:07 PM PST by Dr.Deth
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To: small voice in the wilderness
(Just how DO they get the holes in the donuts..)

Ancient Chinese secret!!

12 posted on 02/08/2005 3:05:09 PM PST by Toddsterpatriot (Protectionism is economic ignorance!)
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To: LiveFree99

Just because I was available and near by, I went to California's first KK opening in La Habra a few years back.

Donuts were too sweet, so I haven't been back.

The first 18 months there were lines there, now nothing.

They also made a move to provide donuts to grocery stores so the grocery store did not have to maintain a bakery like before.
I see lots of donuts left behind there in the store as well.

They are failing...


13 posted on 02/08/2005 3:05:19 PM PST by A CA Guy (God Bless America, God bless and keep safe our fighting men and women.)
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To: A CA Guy

They've been in groceries stores for over 15 years.

They just got greedy and expaned way too fast.


14 posted on 02/08/2005 3:06:13 PM PST by Howlin (It's a great day to be an American -- and a Bush Republican!!!!)
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To: Willie Green

15 posted on 02/08/2005 3:06:23 PM PST by reagan_fanatic ("Darwinism is a belief in the meaninglessness of existence" - R. Kirk)
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To: aft_lizard

There donuts are tiny and glazed way to sweet.

The only draw regarding them are that they were warm when you got them and that was it.


16 posted on 02/08/2005 3:06:51 PM PST by A CA Guy (God Bless America, God bless and keep safe our fighting men and women.)
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To: A CA Guy

Thats where I think Kripy Kreme is failing. You lesson the appeal of you product by letting them get stale all day in a glass case. I get a bad donut at a convenience store, sure wont make me go to the real place and get the fresh ones.


17 posted on 02/08/2005 3:08:30 PM PST by aft_lizard (This space waiting for a post election epiphany)
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To: Howlin

They haven't been in the grocery stores at all here in California until a couple of years ago.

About 4 years ago, the first state KK went up in La Habra, then other stores popped up.

Now they replaces the store donuts of Stater Bros. and others.

It is new to California.

15 years? Amazing, they are so bad.


18 posted on 02/08/2005 3:09:02 PM PST by A CA Guy (God Bless America, God bless and keep safe our fighting men and women.)
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To: A CA Guy

Not here in NC, home of KK. :-)


19 posted on 02/08/2005 3:10:00 PM PST by Howlin (It's a great day to be an American -- and a Bush Republican!!!!)
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To: aft_lizard

They were losing their long lines after they opened more than a handful.

When they were available easier, most people realized they were NOT that special.


20 posted on 02/08/2005 3:10:03 PM PST by A CA Guy (God Bless America, God bless and keep safe our fighting men and women.)
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