Krispy Kreme dumps six top bosses

Krispy Kreme is struggling to turn its fortunes around

Struggling US doughnut firm Krispy Kreme has parted company with six of its top executives after an internal inquiry recommended they be discharged.

Krispy Kreme said five of them had resigned, and one had retired. It did not name them or give any further reasons for their departure.

Krispy Kreme's accounting practices are being investigated by US stock market regulators and New York prosecutors.

The departures were recommended by the firm's independent directors.

In a brief statement, Krispy Kreme said the six included four senior vice presidents.

Across the board

They had responsibilities in "the areas of operations, finance, business development, and manufacturing and distribution" and will be replaced internally "for the time being".

The removal of these officers leads us to wonder who is left to run the business and execute the turnaround John Ivankoe, JP Morgan Securities

Krispy Kreme replaced its chief executive in January, after clocking up losses during six months of 2004.

It said in January it would have to restate the 2004 earnings figures.

It has yet to do so, and in May it missed the deadline for filing its first quarter 2005 earnings, and issued a profits warning.

Krispy Kreme said the special committee of independent directors that recommended the departures was continuing its work.

It added the firm was co-operating fully with the US Attorney's Office for the Southern District of New York and the US Securities and Exchange Committee.

Regulators' investigations centre on how Krispy Kreme accounted for buybacks of some franchises.

"The removal of these officers leads us to wonder who is left to run the business and execute the turnaround," said JP Morgan Securities analyst John Ivankoe.