Krispy Kreme Doughnuts Inc. named Douglas R. Muir, a consultant to the company since December 2004, as the company's new chief accounting officer on Friday.
For the past year, the company has been mired in a Securities and Exchange Commission probe exploring its accounting practices. Earlier this year, the company ousted Chief Executive Scott Livengood and in June forced out six top executives as part of the ongoing work of a special committee of independent directors.
From 1993 to 2004, Muir held various senior financial management positions with Oakwood Homes Corp., a manufacturer of modular homes that filed for bankruptcy protection in late 2002 before eventually being sold to Clayton Homes. Prior to that position, Muir spent 17 years with Price Waterhouse, including a stint as an audit partner from 1988 to 1993. Muir, 51, takes over the position from chief financial offficer Michael Phalen.
The SEC is examining how the country's second-largest doughnut chain accounted for the repurchase of franchises and lowered profit forecasts in 2004. Krispy Kreme has said that it plans to restate earnings for 2004 when the investigations are completed. The company has already said that it expects to report a loss whenever that filing does happen and has not issued profit statements for the last three quarters.
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