By George Anderson
One day after announcing he was leaving his position as chief operating officer of Krispy Kreme, John Tate was publicly named as the new COO and executive vice president of Restoration Hardware.
Mr. Tate's decision to leave comes along with a series of disappointing financial reports and an informal inquiry by the Securities and Exchange Commission into how the company accounted for reacquired franchises. The events have some, such as CBS MarketWatch.com columnist, Herb Greenberg, wondering just how bad things are at Krispy Kreme and if its COO's departure is a sign that "the rats are abandoning ship."
Scott Livengood, chairman, president and chief executive officer at Krispy Kreme has assumed all of Mr. Tate's responsibilities, according to a company statement.
Moderator's Comment: What do you think is really going on at Krispy Kreme? What does the company need to do to put an end to concerns that it is in more trouble than it is publicly letting on?
John Tate is no stranger to Restoration Hardware. He was formerly a member of the Board of Directors of the Company and the head of the Company's Audit Committee. He resigned these positions after agreeing to join Restoration Hardware as its new COO. - George Anderson - Moderator