Donuts -- Is there Anything They Can't Do?

Apparently, they can't make enough money anymore...

Krispy Kreme Doughnuts Inc. said Chief Executive Officer Scott Livengood is retiring and being succeeded by a turnaround specialist from a firm that specializes in restructurings.

The company also announced that its banks have granted a brief extension of its credit lines. Krispy Kreme said it would have been in violation of its bank covenants Jan. 14 after it failed to file quarterly financials on time.

The news sent Krispy Kreme's shares soaring.

Mr. Livengood's exit comes as Krispy Kreme is struggling with a tangle of accounting problems, an investigation by the Securities and Exchange Commission and declining sales of its famous glazed doughnuts. Krispy Kreme said average weekly sales per store tumbled 18% in the eight weeks ended Dec. 26 compared with a year earlier.

The Winston-Salem, N.C., company warned that the sharp downturn in sales and costs related to its legal and regulatory woes could result in a loss for the current quarter. Krispy Kreme added that it will review with its turnaround specialist possible store consolidations. Krispy Kreme now has 435 stores in the U.S., Australia, Canada, Mexico and the United Kingdom.

It's a sad time in America when they need to restructure the premier donut company. I blame Dr. Atkins. To be fair, since I blast him on every other occasion, I have to admit Michael Moore is probably doing his part.