Winston-Salem, N.C. (Feb. 14, 2002) -- After published reports revealed the use of special purpose entities as a way to move debt off its balance sheet, cult favorite Krispy Kreme doughnuts agreed to change its accounting methods.
Krispy Kreme said it would move a $35 million expense, earmarked for a new doughnut factory, to its books instead of using SPEs -- the murky vehicle which ultimately caused the downfall of Enron.
The chain's chief executive, Scott Livengood, said the change was enacted to ease investor concerns that Krispy Kreme could suddenly implode as Enron did.
-- Electronic Accountant Newswire staff
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