WINSTON-SALEM N.C. In the midst of working on a turnaround, Krispy Kreme Doughnuts Inc. announced Tuesday the resignation and replacement of its chief financial officer and general counsel and changes to its board of directors.
The company's chief financial officer, Michael C. Phalen, has resigned his post effective June 5 to return to investment banking, the company said. Phalen will be replaced by Douglas R. Muir, Krispy Kreme's chief accounting officer.
Krispy Kreme named as its new executive vice president and general counsel Sandra K. Michel, most recently general counsel and secretary at lodging company La Quinta Corp. She replaces Charles A. Blixt, who had served as general counsel on an interim basis since last September. Blixt will remain on Krispy Kreme's board of directors, pending his nomination at the company's shareholder meeting June 4, the company said.
Krispy Kreme also will nominate for election to its board of directors C. Stephen Lynn, chairman of branding services firm Cummings Inc., and the former chief executive at Shoney's Inc. and Sonic Corp. and Lynn Crump-Caine, chief executive of organizational consulting firm OutsideIn Consulting, the company said.
Long-time board member Robert L. Strickland will retire after serving more than eight years. He was elected vice chairman in 2005.
CFO Phalen led Krispy Kreme's financial operations since January 2004, and is the only member of the company's former senior management team who remained with the company through its regulatory and legal troubles, which began in May 2004. He was named as a defendant in numerous shareholder lawsuits, which are now settled, that alleged breach of fiduciary duties and attempts to "manage earnings" among senior leaders at Krispy Kreme. Krispy Kreme has always denied any wrong doing, even within the settlement.
Muir, the newly named CFO, joined Krispy Kreme in December 2004 and was "instrumental in the organization becoming current with its Securities and Exchange Commission filings," which occurred earlier this month, the company said.
"It is encouraging that we are transitioning two very important executive positions and attracting industry veterans to our board of directors as we continue the Krispy Kreme turn around," said Daryl Brewster, Krispy Kreme president and chief executive.
Krispy Kreme operates or franchises about 395 namesake doughnut and coffee locations.