October 13, 2005
Krispy Kreme Stock Continues to Fall
Bloomberg News reports that shares of Krispy Kreme fell 13% yesterday as investors' concern intensified regarding the financial viability of the doughnut giant's largest franchisee, Great Circle Family Foods LLC. Great Circle filed a lawsuit against Krispy Kreme last week alleging that the company was trying to force it into bankruptcy with unreasonable charges for supplies and was preparing a similar involuntary bankruptcy filing against its Colorado, Wisconsin and Minnesota franchisee Glazed Investments. See September 30, 2005 blog entry. Amidst shareholder lawsuits and accounting probes, Krispy Kreme stock has dropped 62% this year.
Posted by franchiselawblog at October 13, 2005 05:40 PM