Nearly two years after its stock collapsed amid an accounting fiasco, Krispy Kreme Doughnuts Inc. faces a host of lawsuits, a criminal investigation and declining sales. Meanwhile, efforts are under way in New York and Chicago to ban a key ingredient of its famous doughnuts, one that helps make the trademark treats so darn addictive.
Sounds a lot like the challenges faced by executives at Big Tobacco, and that’s just where Krispy Kreme has turned to for help.
Last month, Krispy Kreme named Charles A. Blixt, a former executive vice president and general counsel at Reynolds American Inc., as its new general counsel. A week later, the company appointed Andrew J. Schindler, the retired chairman of Reynolds American, to its board of directors.
“They have long and distinguished careers at (Reynolds) and they left in pretty good shape,” said Mike Lord, a professor of corporate strategy at Wake Forest University. “Importantly, what’s key is that they do have a great wealth of experience to manage under adversity.”
Adversity is what Krispy Kreme faces, and not only on the balance sheet.
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