2 October 2005
Time to fake the donuts
Krispy Kreme's largest single franchise operator is suing Krispy Kreme, charging that executives at the home office misappropriated funds designated for marketing and billed their franchise for bogus charges.
The partners of Los Angeles-based Great Circle Family Foods LLC contend that Krispy Kreme is seeking to drive them into bankruptcy.
Krispy Kreme has been under considerable fire recently: a New York State inquiry and an SEC probe have questioned the company's finances, and a previous lawsuit claims that KK management manipulated the balance sheets to conceal deficiencies in the company's pension program.
The company spokesperson would not comment, but given the shellacking Krispy Kreme has been getting in the press of late, I surmise that her eyes glazed over when she was questioned.
(Via McGehee.)Posted at 9:27 AM to Dyssynergy