What’s Really Going On At Krispy Kreme?

Aug 18, 2004

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

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

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