Krispy Kreme CEO resigns
CHARLOTTE, N.C. (AP) - The chief executive of Krispy Kreme Doughnuts has resigned amid a sputtering turnaround effort.
The company says Daryl Brewster is leaving for personal reasons and will stay on until the end of January. The board of directors has elected its chairman, James Morgan, to replace him.
Brewster took the top spot in 2006 to help lead the company through a turnaround. However, it has continued to struggle. Krispy Kreme reported last month that its quarterly sales were down and that it expects more franchised store closings ahead.
The 60-year-old Morgan has been a Krispy Kreme director since 2000, and he was elected chairman of the board in 2005. He previously served as chairman and CEO of investment banking and brokerage firm Interstate/Johnson Lane.
Krispy Kreme, which sold its first glazed doughnut in 1937, has been hurt over the past couple of years by allegations of misconduct by former management. It's also been hit with bankruptcy filings by several of its franchisees and competition from larger rival Dunkin' Donuts, as well as healthier eating habits.
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.