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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (90869)	2/10/2005 12:35:48 PM
From: rrufff	Read Replies (7) \| Respond to of 122087

If only KKD could buy there way out of their troubles. Looks like they are trying. Love those fees. Cut donut makers @ $10/hour and hire turd around guys at $700/hour. Plus what about the golden parachutes for Feelingood? Krispy Kreme to pay turnaround firm $400,000/month Thu Feb 10, 2005 12:10 PM ET LOS ANGELES, Feb 10 (Reuters) - Krispy Kreme Doughnuts Inc. (KKD.N: Quote, Profile, Research) on Thursday said it will pay a turnaround firm $400,000 a month as well as a still-undetermined fee if the group succeeds in restoring the doughnut chain's financial health. Shares of Krispy Kreme, which warned earlier this week of a possible cash crunch, fell 12.6 percent to a record low. Krispy Kreme, which has been struggling with flagging doughnut sales and a U.S. Securities and Exchange Commission probe of its accounting, last month hired turnaround firm Kroll Zolfo Cooper LLC. It named Kroll Zolfo's chairman, Stephen Cooper, as CEO, replacing Scott Livengood. Steven Panagos, head of Kroll Zolfo's restructuring practice, was named president and chief operating officer. But Cooper and Panagos, who Krispy Kreme said last month would be paid at hourly rates of $760 and $695, respectively, will not be devoting all their time to the doughnut chain, according to a regulatory filing. "It is hereby understood and agreed that neither Cooper nor Panagos shall devote his full time to this engagement," Krispy said. In addition to his job at Krispy Kreme, Cooper is overseeing the dismantling of scandal-ridden energy trader Enron Corp. (EONPQ.PK: Quote, Profile, Research) Krispy Kreme, based in Winston-Salem, North Carolina, said Cooper and Panagos will not be able to hire or terminate company officers or execute transactions beyond the normal course of business without the approval of the company's board of directors. Krispy Kreme said earlier this week it is slashing 25 percent of its staff outside retail outlets and needs to secure new funding by the end of March. Last month, the company averted defaulting on a $150 million credit facility after its lenders agreed to give it until March 25 to prepare its financial statements. By that time, Krispy Kreme will need additional credit, it said. Krispy Kreme shares were down 93 cents at $6.28 at midday on the New York Stock Exchange, after earlier hitting a record low of $6.25. The stock has lost over 80 percent of its value in the last year.