corporate buzz

The Kreme and the Klear Krispy Kreme leaves a Hole in Her Heart. After all the hullabaloo in the last couple of years about its expanding nationwide, the North Carolina-based doughnut chain’s sales and stock price have gone stale. Late last year, the company reported a $3 million quarterly loss. More ominous still, management is under investigation by the Securities and Exchange Commission over its financial reporting, and shareholders have filed suit in federal court alleging the company cooked the books to show healthy profits, even though it knew sales were crashing. Yesterday, the company announced it would lower reported profits for the last three quarters of the year ending February 2004.

Looks like more than just major league baseball players were using the Kreme to juice their numbers. Will MLB be restating their inflated statistics for the past few years? Not unless there’s a Sarbanes-Oxley Act for Sports. In the mean time, you can feast your eyes on Krispy Kreme contracts.