WINSTON-SALEM, N.C., June 21 (UPI) -- Krispy Kreme Doughnuts Inc. of North Carolina decided to fire six top executives in an ongoing probe of apparent accounting irregularities.
The six unnamed officials, who include four senior vice presidents, either resigned or took early retirement, the company said Tuesday.
Krispy Kreme is under federal investigation in a possible accounting fraud scheme.
The doughnut chain also said that an internal panel is continuing its investigation and that it is cooperating fully with a probe by the U.S. attorney's office and the Securities and Exchange Commission.
The six executive departures struck some financial analysts as an ill omen for the one-time Wall Street darling, MarketWatch reported.
"The sudden removal of these executives points to far reaching abuse within the former management ranks of this company," wrote J.P. Morgan's John Ivankoe in a note to investors Tuesday.
Also, it "further calls into doubt previously reported results" as "no business division appears untouched."
Finally, Ivankoe said, "the removal of these officers leads us to wonder who is left to run the business and execute the turnaround."
