WSJ -- Krispy Kreme's COO To Resign Next Month.
August 16, 2004 3:53 p.m.
Krispy Kreme's COO To Resign Next Month
By MARK MAREMONT
Staff Reporter of THE WALL STREET JOURNAL
Krispy Kreme Doughnuts Inc.'s chief operating officer, John W. Tate, has submitted his resignation effective mid-September, a company spokeswoman said.
Scott Livengood, Krispy Kreme's chief executive officer, will assume COO responsibilities, said Amy Hughes, the company spokeswoman.
Ms. Hughes said Mr. Tate is resigning to pursue another opportunity in northern California. She declined to comment on market speculation that Mr. Tate would join Restoration Hardware Inc., which is based in Corte Madera, Calif.
Mr. Tate's departure comes at a critical juncture for Krispy Kreme. Following several years of torrid growth, the Winston-Salem, N.C.-based chain has stumbled in recent months, reporting a slowdown in sales and its first-ever profit warning. Last month, it disclosed that the Securities and Exchange Commission had launched an informal inquiry into the way it has accounted for franchise buybacks, along with the circumstances surrounding the company's recent profit warning.
Mr. Tate, 53 years old, joined Krispy Kreme in 2000 as its chief financial officer, and was named chief operating officer in 2002. Prior to that, he was chief financial officer at Williams-Sonoma Inc. and Dole Food Co.
Krispy Kreme stock, which hit nearly $50 last year, changed hands at $13.32, down 25 cents, in late afternoon trading today on the New York Stock Exchange.
Write to Mark Maremont at mark.maremont@wsj.com
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