WTF - Krispy Kreme to Close?

Despite the fact that over 5,000 runners showed up this weekend for the Krispy Kreme Challenge, we have word that Krispy Kreme is in danger of closing shop.

A manager at the Peace Street location when asked if she knew about the closing responded “Not that I’ve heard.”

Various reports are stating that the Winston Salem based company could not survive 2009 and it’s stocks seem to be a bit lower today and have been on a six month slide. Let’s hope this isn’t true as it would be sad news for many foodies, kiddies and workers across the country.

More closings in the Raleigh area are rumored but not confirmed. New Raleigh will keep you up to date on the others as soon as we have more information. Krispy Kreme has faced financial troubles before. In 2004 and 2005 Krispy Kreme was investigated by the SEC and found guilty of massive accounting fraud designed to inflate the stock price.

The company has been giving away a lot of doughnuts recently, assumingly to attempt to drum up more business. Maybe the mound of empty boxes at Saturday’s race may have been foreshadowing.

Matt02/09 05:51 PM

Krispy Kreme is probably headed down the tubes, but I would imagine that some enterprising fellow would step in and make that some sort of pastry shop. By all accounts that store does a good business and the location is A+++.

revolu02/09 06:09 PM

NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!

Acree02/09 06:35 PM

According to the signage they’ve only been selling “DOUG” for weeks anyway.

Vince`02/09 07:03 PM

definitely know a few people that would miss the doug nuts

Suzanne02/09 08:14 PM

Please NO. We need our Krispy Kreme!

T-Plain02/09 09:22 PM

This is a bit alarmist at this point, IMO.

corey3rd02/09 09:53 PM

Krispy Kreme never recovered from when the CEO of Target slammed them getting a special display in his stores.

Vanessa02/10 04:10 AM

KK closing is da DEVIL!

shaggy02/10 08:09 AM

I don’t buy it. KK on Peace street is a cash cow. Unless the whole complany goes under, that location will remain open.

DPK02/10 08:16 AM

WTF - Sensationalist New Raleigh Article?

That location is an epic money maker for KK. Go there any time of day and there is a line.

TheWaveLife02/10 08:39 AM

Hehehe… Doug.

Isaac02/10 09:22 AM

To everyone pointing out how busy the Raleigh store does, the article is about THE WHOLE COMPANY GOING UNDER.

kg02/10 09:40 AM

can’t imagine an equity firm wouldn’t swoop in and buy them if it came to that. they might have over expanded in their hayday but they still sell a very viable product.

DPK02/10 09:43 AM

Someone would buy them out, their business produces a viable product like kg said above. This isn’t like Circuit City. Some stores will close yes, but the one on Peace… no.

corey3rd02/10 09:49 AM

nothing tops a glazed Krispy Kreme straight off the belt. It’s Carbo Crack. You can’t help but have one more when their hot. But that’s the problem. There’s only one store in the entire triangle that gives that satisfaction. I have four Dunkin Donuts within five miles of my house. I’m not a fan of the Krispy Kreme donuts that sit at the grocery store.

Michael02/10 11:33 AM

The store on Peace St is a dump. Before I moved to Raleigh, hot Krispy Kreme dougnuts and coffee were one of life’s small and frequent joys. I’ve only been to this location twice in five years. Maybe Kripsy Kreme should have devoted less money and resources to putting stores in Bahrain and Indonesia and spent a little time renovating or more logically relocating (Cameron Village?) the ONLY store within 50 miles of the Triange area.

MMI02/10 12:21 PM

Ha! I knew this would pop up when I read that article on CNN.com yesterday. Krispy Kreme is simply amongst the higher-profile of business listed as in jeopardy. Rite-Aid is there, too—wonder what would become of their prime locations in both Cam Village and Ridgewood Shopping Center.

ct02/10 03:10 PM

Too many competitors for KK in the Triangle… mainly Brueggers and Panera, to a lesser extent Dunkin, Daylight, etc.

jhoysi02/10 03:16 PM

Not completely surprised. Outside of this area, Krispy Kreme is second-fiddle to Dunkin Donuts (with the exception of CT…for some reason they go nuts over Krispy Kreme there). It’s a shame, since they are an NC business, but I just can’t say I’m surprised.

Michael02/10 04:34 PM

I think the comparison of Krispy Kreme and Dunkin Donuts is strange. They’re really two very different things.

VaNC02/10 05:14 PM

I admit I still don’t get the Dunkin Donuts thing. I have tried them at the new place in Glenwood South. The donuts are just okay and the coffee…much the same. Don’t get the big draw.

BuckyK02/10 05:17 PM

They are fried dough with a whole in the middle, Michael.

And again, if you didn’t go there, please stop complaining that it is closing. You are the reason it is closing.

Well, you and egregious fraud from which the company never recovered.

Michael02/10 05:43 PM

I’m not complaining that this particular KK is closing, BuckyK. I’m complaining that it’s awkwardly located and rundown with inadequate seating inside. My suggestion is that KK erred by over-expanding the franchise and misunderstanding their brand to some degree. I doubt I am the reason they are closing, but I am not sad to see this particular store fail because they neglected what could have been a very profitable area. And as long as we’re abandoning nuance; a cookie and a baguette are baked dough without wholes in them.

That will have to be my final word on the great doughnut debate.

Michael02/10 05:45 PM

holes, that is.

MMI02/10 05:45 PM

It’s not set to close yet, people. Read the damned article.

BTW, if you can’t tell the difference between 2 wholly (no pun intended) different styles of doughnuts, remind me never to eat at your house.

Did you know that salsa and ketchup are actually not the same thing? Neither is cocktail sauce, oddly enough. Oh, and Sourdough is a COMPLETELY different type of bread. I know—crazy, right?? :|

corey3rd02/10 05:45 PM

The store at Peace Street isn’t going under. It is the corporation that’s in major trouble.

I still think they missed the boat when the refused to put oreo cookies inside their donuts.

bb02/10 07:03 PM

Dunkin Donuts in my opinion is a real donut, krispy kreme is a whole other beast….albeit a delicious beast.

MR02/10 07:12 PM

Brueggers, Panera and Dunkin are no competition, ct they are completely different. I can’t imagine Raleigh w/o Peace St Krispy Kreme. As a state employee I loved the smell of them wafting over the parking lots onthe way to work. It is the perfect post church treat on Sunday

VaNC02/10 07:14 PM

I understand that they are different, and I love a good cake donut (love Daylight donuts….fresh and yummy) but I don’t agree that Dunkin makes a good cake donut…at least not anymore. I remember liking them when years ago, when they still had the little handles, but tried the ones at the new place and the from the place at Crabtree and they were just nasty…leave a grease slick on the roof of your mouth and taste like…well, nothing much.

Sam02/10 07:21 PM

HMMMM, Does the media play a role in consumer confidence? The folks at NR might consider this when they jump at every opportunity to announce failing businesses.

corey3rd02/10 09:21 PM

I don’t think NR had anything to do with Krispy Kreme stock hitting $1.27 a share today. It’s cheaper to buy the stock than a donut and a milk.

MMI02/10 09:32 PM

^^^ Daaaaaamn…

JRD02/10 10:58 PM

KK definitely overexpanded a few years back. However, there are some KK locations like the one on Peace that are true originals that do good business. They should just downsize a bit. The Peace st. location is practically an iconic landmark in that part of town. I could not imagine that corner without the KK.

I actually noticed a couple weeks ago that it is one of the few recognizable things you can see from the top of the City Club.

Rab02/11 02:27 AM

this would be very very disappointing. big time. KK is NC institution yet classic shops keep disappearing…

Sallie02/11 11:32 AM

For all of you coming down so hard on New Raleigh for being “alarmist” and “announcing failing business”, this is NATIONAL NEWS PEOPLE. Among other outlets, US News and World Report referenced it in their article on 15 businesses that might not survive 2009.

http://www.usnews.com/blogs/flowchart/2009/02/06/15-companies-that-might-not-survive-2009.html

While the Peace Street location certainly does a land office business, and is an icon of our downtown, the CORPORATION itself is in big trouble and hasn’t earned an operating profit in three years. You don’t have to be an economist to figure out that isn’t exactly solid footing, especially under current circumstances.

MMI02/11 02:07 PM

Jeebus! Is **NO ONE** reading the linked article? Yes, Sallie, that’s what the article says.

MMI02/11 02:10 PM

I have a solution to this BS. Mr./Mrs. Anonymous New Raleigh contributor, please consider saying something to the effect of, “Reports such as THIS one from the Associated Press [or US News, or CNN.com] claim that at least 15 U.S. businesses have been rated as near-closure by _______.” Don’t just say “reports” with a link that apparently no one is clicking.

Chico02/11 05:25 PM

First of all they should not have changed their hours. Knowing that I could have KK 24 hours a day provided me with a certain spiritual security. And I realize that their problems are national, but damn! Secondly, my idea (that was sent to corporate) to allow folks to sign up for text alerts when the nuts were hot was brilliant, but apparently not worthy of a response. All I wanted for my trouble was a lifetime supply of Krispy Kremes. Maybe I aimed too high. Lastly, stocks suck. That’s the problem with this country - too many stocks. I say sell off the individual locations to independent proprietors, let the strong survive, and keep the grease vats hot. Because if they try and close that Peace St. location they best have a good set of bolt cutters. Raleigh can be placid and apathetic about a lot of things, but if you start fucking around with folks’ doughnuts (and they have damn good coffee too) you’re asking for conflict. This is not a threat or anything, I’m just saying…

smitty02/12 12:09 AM

Anyone remember the KK on Walnut in Cary? They closed after 2 years or so. Rumor was it because they were “too busy” and it was killing their customer satisfaction scores.

I think the Atkins diet killed them right when they were expanding.

jimmy jazz02/12 01:41 PM

We should start a Krisy Kreme Klub and do KKK rallies in the parking lot. We could even burn a lower case t in honor of their terrific donuts!

Al02/14 12:14 PM

They’re being punished for the vomit race. I liked the place till that disgusting event. I don’t give a shit now

Dana02/24 09:31 AM

Please hear Molly’s rant about the libelous nature of posts on the internet which erroneously report the demise of businesses. Buzz Out Loud Episode 916. Skip to 27:00.
http://reviews.cnet.com/buzz-out-loud-podcast/

Pepper03/03 03:59 PM

Maybe WRAL will be a defendant in a lawsuit too Dana.

http://www.wral.com/news/local/video/4651116/

http://www.wral.com/business/story/4650600/

stevereenie06/14 04:43 PM

Some has commented and accurately so that there is no glazed donut better than Krispy Kreme fresh off the belt. That’s why I look for the “red” light sign to indicate they are being made NOW. The other side of the same coin is that there may not be a worse glazed donut than a Krispy Kreme many hours after the were made. I think the introduction of the donut to Grocery chains on a rack essentially provided a disgusting product that had to diminish its name. Reason tells me that this would also be the case with “fund raising” dounts. If you can’t buy a “fresh” (and not by the Krispy Kreme official deffinition of fresh) donut just recently made, save your money. I wrote the President of the company once to tell them how these resale of essentially day old crap was ruining their name. I never heard from him. This is a company that can’t figure out what it is and what it isn’t…..............sc

Micah06/14 06:01 PM

I must be one of the extreme minority that actually does not like hot KK doughnuts. They are gooey and messy and aren’t really good until the inside has had a chance to cool and get some texture. The Cruellers that they have in the grocery store are some of the best doughnuts you can buy. Obviously these grocery-store-sold doughnuts are good to somebody or every grocery and C-store in the area wouldn’t stock them.

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Jedidiah Monday, February 09, 2009