Krispy Kreme to vacate western distribution facility
Pico Rivera-based BakeMark USA LLC has signed a deal to take over distribution of baking and other supplies to Krispy Kreme Doughnuts Inc. facilities west of the Mississippi.
The move comes after the ailing Winston-Salem, N.C.-based confectionary maker said it would close its 102,000-square-foot distribution center near Los Angeles by the end of August.
Once a darling of Wall Street, Krispy Kreme is in the midst of an attempted turnaround following a series of accounting scandals, expensive expansions into untried markets, and declining doughnut sales.
The Krispy Kreme move in California is the second national distribution change for the firm in the past six months. The firm agreed in December to sell its Illinois manufacturing and distribution facility for $11.8 million, with the proceeds going to pay down debt.
Shortly afterward, Chief Executive Officer Daryl Brewster stepped down after heading the firm for less than two years.
Last month, the firm reported a fourth quarter loss of $31.8 million on $110.9 million in revenue, down from $112.2 million in the year prior.
The firm produces more than 5 million doughnuts a day, which it sells through more than 440 stores in 41 states and 13 foreign countries.
Krispy Kreme to vacate western distribution facility
