Brought in to turn the company around, Daryl Brewster wasn't able to make it happen, and resigned from Krispy Kreme Doughnuts (KKD) today. He'll stay on until the end of January 2008. While he cited personal reasons as the reason for leaving, it was in reality the poor performance of the company that caused the decision.
While the company made headlines in early December concerning a narrowing loss, that was from cost cutting. That was of course a needed step, but the sales, cash and free cash flow didn't follow along with the cuts.
Taking over for Brewster will be Chairman James H. Morgan, who has been a member of the Krispy Kreme board since July 2000. He will also remain in his chairman position while running the company.
Morgan is the founder of investment management company Covenant Capital LLC, where he was also chairman and chief investment officer.
He'll have his work cut out for him, as there have been tough competition, changing trends, several franchisee bankruptcies and accusations of misconduct by past management in the company.
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