by YES! Staff

US News: Krispy Kreme ‘might not survive 2009’

“The donuts might be good, but Krispy Kreme overestimated Americans’ appetite — and that’s saying something,” Rick Newman of US News and World Report wrote in a Feb. 6 article entitled, “15 Companies that might not survive 2009.” Newman attributed the donut chain’s decline to overexpansion in the 1990s and its decision to carry a significant amount of debt. Krispy Kreme, a Winston-Salem institution that began selling donuts out of its bakery in Old Salem in 1937, hasn’t earned an operating profit in three years, the report stated. In 2000, Krispy Kreme held an initial public offering of common stock at $16.75 a share. On Feb. 12, Krispy Kreme stock was trading at $1.20 a share. Krispy Kreme, which has almost 4,000 employees — 490 of them in the Triad, could suffer the same fate as other wellknown retail brands like Circuit City and Linens ‘n’ Things, which both filed for bankruptcy in 2008, Newman said. Moody’s Investors Service is predicting the default rate on corporate bonds,an indicator of bankruptcy filings, will be three times higher in 2009 than in 2008, and 15 times higher than in 2007. — KTB

Our contracting state

North Carolina magazine Signature is ceasing publication after only 10 issues. Some of the editorial staff will join sister magazine, Our State, which also laid off several employees. Signature was marketed toward women under 40, especially the “affluent, educated, and confident.” Our State has been around for 75 years and attracts readers mostly over the age of 40. You may have found both in the waiting room at the dentist’s. Now you will find only one. The glossy monthly magazines are sustained by paid subscriptions, as well as specialty advertising. In its two years of publication, Signature had a paid circulation of 20,000. Our State has a paid circulation of 148,000. Elizabeth Hudson, former editor of Signature, will take over Our State and plans to incorporate elements of the other magazine. Both were published out of an office in Greensboro on Green Valley Road. — GL

Undue diligence

Our friends at the Phoenix New Times took advantage of last week’s NBA All-Star Game, which took place in the city, by running a long-form piece on a possible “tattoo cap” in the league, to be enforced by Commissioner David Stern in the 2011 season. “In February 2008, the NBA announced it would push for a ‘tattoo cap’ on players when its collective bargaining agreement expires at the end of the 2011 season,” wrote Niki D’Andrea. “‘We feel it is important that our players not scare the bejesus out of affluent demographic groups with gangsta-style tattoos,’ NBA Commissioner David Stern told” The only problem is that the Fox story was a hoax, pulled from the blog of author Con Chapman, who runs the Gerbil Sports Network. To D’Andrea’s credit, she compiled an excellent history of tattoos in the league and even got players Amar’e Stoudemire, Jason Richardson, Matt Barnes and Shaquille O’Neal to go on the record. Still, though… she got punk’d pretty good. — BC