CBS Marketwatch reports that the franchisor's auditors have not finished the company's financial statements and will not do so until an independent law firm completes "additional procedures" related to an unspecified acquisition by the company in 2004. The company stated in its SEC filings that the independent law firm had already concluded that neither Krispy Kreme nor its employees committed any misconduct in connection with the acquisition, but the company authorized the law firm to perform the "additional procedures" requested by the auditors. For a copy of the 10-Q filed on September 10, 2004, click here. Krispy Kreme's stock was up four cents at $11.60 at the close of trading today, but the company's stock has declined by 75% in the last year.
Posted by franchiselawblog at September 14, 2004 05:55 PM