Krispy Kreme down on result delay

Krispy Kreme is struggling to turn its fortunes around

Shares in Krispy Kreme Doughnuts fell 4% on Monday following its admission that it will not meet a 15 December deadline to release its annual results.

The struggling US doughnut maker, once a darling of investors, is also delaying the release of restated results for previous years.

Its past accountancy errors are being probed by the US financial watchdog.

Krispy Kreme had to secure a $225m (£131m) loan back in April to avoid the threat of bankruptcy.

Poor sales

Krispy Kreme said late on Friday that "it is highly unlikely they [its results] will be completed by the required date".

The North Carolina company said it was now in talks with its lenders about extending the deadline, and "believes it will be able to obtain such an extension".

Struggling against declining sales, Krispy Kreme's accounts are being probed by the US Securities and Exchange Commission.

The errors in its books were caused by the way it accounted for the repurchase of some franchises.

In June it parted company with six of its top executives.