Category Everything Else
The man who shepherded failed Houston-based
energy giant Enron through bankruptcy reorganization is the new head of
Stephen Cooper succeeds Scott Livengood
as chief executive officer of the Winston-Salem, North Carolina, doughnut
Livengood is leaving the post as Krispy
Kreme faces regulatory scrutiny and shareholder lawsuits. Livengood --
who'd been C-E-O since 1998 -- has been criticized for his handling of
the company's recent financial problems.
Krispy Kreme also says Livengood retired
from his positions as president, chairman of the board and as a director
of the company. He'll become a consultant on an interim basis.
Krispy Kreme is under a Securities and
Exchange Commission investigation of its franchise buybacks and earnings
outlooks and is facing shareholder lawsuits.
I remember when I was working for Enron
during the dot.com days, when everyone in the company had a stock ticker/tracker
program running during the day. I was trying to cash in on some high-flying
IPO, and I read the latest weekly list of companies going public. The
only one on the list I laughed at was Krispy Kreme. "Why would
a *doughnut company* go public?" Of course, being on the west
coast, I knew nothing of the KK mystique.
Fast forward, and now KK is reeling from
a series of accounting scandals. They bring in a CEO, a turn-around
specialist, the same guy who took over Enron and brought it out of bankruptcy
proceedings. This should be a lesson to companies who don't take
their reputation and marketplace image seriously. KK had an excellent
reputation, one that was worth as much as their stock price. Now
they're lacking both.