Situation gets stickier for Krispy Kreme
Embattled confectionery business, Krispy Kreme Doughnuts, has come under increasing scrutiny over an alleged hole in its accounts after its auditors delayed signing them off.
Link: Sticky situation for Krispy Kreme Doughnuts
PricewaterhouseCoopers has instead asked that an outside law firm hired by the doughnut-maker complete ‘certain additional procedures’ before it finalises its review, The Daily Telegraph reported.
Auditor concerns are believed to relate to an acquisition made last year – the law firm, which has not been named, has already concluded that no employee of Krispy Kreme engaged in ‘intentional misconduct’.
This is just the latest in a chain of bad news for the doughnut business, which has seen sales fall after expanding rapidly.
It gave a profits warning in May and faces an inquiry by the Securities & Exchange Commission into its accounting, which is at the ‘informal’ stage.
Krispy Kreme, based in the US, has four stores in the UK including one in Harrods and one at Canary Wharf.