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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Krispy Kreme CEO Livengood ousted



 (The Spokesman-Review)
Associated Press

CHARLOTTE, N.C. — Chief executive officer Scott Livengood was ousted Tuesday as head of Krispy Kreme Doughnuts Inc., the once-trendy chain whose stock price has plummeted amid a federal securities investigation and allegations of padded sales figures. Shares of Krispy Kreme jumped 12 percent.

The Winston-Salem company’s board of directors announced the retirement of Livengood, who has been criticized for his handling of the company’s recent financial problems, as one of “a number of important actions to address the company’s current situation.”

Livengood, 52, who has been at the helm for seven years and led the company’s rapid rise, was replaced as CEO by Stephen Cooper, a turnaround specialist who most recently shepherded the Enron Corp. bankruptcy reorganization.

The company also warned that persistent declines in sales may lead to a fourth-quarter loss.

Krispy Kreme said Livengood also retired from his positions as president, chairman of the board and as a director of the company and will become a consultant on an interim basis. Livengood had served as CEO since 1998 and had been with the firm since 1977.

James Morgan, who has served as a director of the company since July 2000 and vice chairman since March 2004, has been elected chairman, Krispy Kreme said.