Krispy Kreme Doughnuts Inc. has again put off filing financial statements with the Securities and Exchange Commission.
The country's second-largest doughnut chain has not filed earnings statements since the January removal of chief executive Scott Livengood and its announcement that earnings statements for the last three quarters of the 2004 fiscal year would be revised.
The SEC and federal prosecutors have been probing into how Krispy Kreme accounted for the repurchase of franchises for its factory stores. The company arranged $225 million in loans in April to stay out of bankruptcy, and as part of the deal had been required to file its audited financial statement by Dec. 15. The company is now in talks with its lenders about getting an extension.
"While the company is making substantial progress towards the preparation of such financial statements, it is highly unlikely they will be completed by the required date," Krispy Kreme said in the latest SEC filing
According to recent filings, the company's review of the accounting principles used in its statements will likely delay the finalization of its financial statements until the second quarter of fiscal 2006. An independent committee finished its report into accounting practices at Krispy Kreme in August, and announced plans to reduce past income statements by more than $25 million.
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