According to a press announcement today, a special committee of outside directors recommended discharging these executives (no names were released). Among them were four senior vice presidents in operations, finance, business development, and manufacturing and distribution. For the time being, Krispy Kreme said it will fill those positions with existing personnel.
The way I see it, this is part of the long and rather rocky road that Krispy Kreme faces as it journeys back from scandal. Many of us remember when former CEO Scott Livengood resigned, and it now seems that other executives should have vacated the premises as well.
I took the liberty of asking David Gardner what he thought, considering that Krispy Kreme is a stock he picked for Motley Fool Stock Advisor long before we all learned of the company's troubles. "This is an unsurprising development that investors should regard as a routine outcome for a company so questionably and perhaps even criminally mismanaged," David said. "The market has essentially treated it as a non-event, which I think is appropriate."
"Fired" and "executives" are words that hardly ever sound good in headlines, but in the long run, this is just another example that Krispy Kreme's cleanup duty isn't done yet.
Tasty Foolish Takes on Krispy Kreme:
- Should investors take a nibble -- or spit it out? Two Fools explored the subject in March.
- Recall Krispy Kreme's recent financing.
- Here's coverage of Scott Livengood's resignation.
Alyce Lomax does not own shares of any of the companies mentioned.