Krispy Kreme In Talks To Sell Franchise Stake

Reuters:

Krispy Kreme Doughnuts Inc.on Monday said it is in talks to sell the 35-percent stake it holds in its United Kingdom franchisee as part of a broader effort to restructure its business.

“Krispy Kreme is currently in discussions with its UK franchisee to sell this ownership interest to them,” said Laura Smith, a spokeswoman for the doughnut shop chain.

In a similar move, Krispy Kreme late last year sold its stake in its Australian franchisee, but the chain’s management has said it will continue to expand internationally.

Krispy Kreme, which is based in Winston-Salem, North Carolina, is grappling with a restatement of past financial results, an accounting probe and falling sales at its namesake doughnut shops.

Last month, the chain named a new chief executive, former Kraft Foods Inc