Another Choice Offering From Wall Street: A Doughnut with 11-25 Grams of Fat from a Company Awash in Red Ink with a Checkered Accounting History

by Pam Martens and Russ Martens
Wall Street on Parade

A preliminary prospectus has been filed with the SEC to bring Krispy Kreme, the doughnut retailer, back to trade in U.S. public markets. JPMorgan, Bank of America and Citigroup will be three of the four Lead Book-Running Managers on the deal according to the preliminary prospectus. Those same three Wall Street underwriters have the distinction of just last week being banned from participating in a big European Union bond offering because of their past cartel activity in Europe. Morgan Stanley is to be the fourth Lead Book-Running Manager on the deal.

Krispy Kreme’s net losses have been escalating over the past three years according to its SEC filing. Net losses in 2020 were $60.9 million; $34 million in 2019; and $12.4 million in 2018.

During the company’s prior history as a publicly-traded company, the Securities and Exchange Commission charged the company with doctoring its earnings, ruling as follows in 2009:

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