The On Going Rip-Off of Krispy Kreme

How not to run a business

Krispy Kreme to pay turnaround team $400K per month

WINSTON-SALEM, N.C. (Feb. 10) - Krispy Kreme Doughnuts Inc., based here, agreed to pay turnaround firm Kroll Zolfo Cooper LLC $400,000 per month to help return the operator and franchisor of 401 doughnut-and-coffee restaurants to profitability, the company disclosed in a filing with securities regulators.The monthly payment includes the previously reported hourly wages for Kroll Zolfo Cooper's executives Stephen F. Cooper and Steven G. Panagos, who last month were named Krispy Kreme's chief executive and president and chief operating officer, respectively. Cooper will be paid $760 per hour, and Panagos will be paid $695 per hour. Krispy Kreme also is responsible for payment of out-of-pocket expenses and a $200,000 security retainer, according to the Thursday filing with the U.S. Securities and Exchange Commission. In addition, a "success fee" for Kroll Zolfo Cooper is under negotiation and will be determined within 60 days.