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Krispy Kreme holds fund-raiser to publicize opening of its first store in the Fredericksburg area

Krispy Kreme holds fund-raiser to publicize opening of its first store in the Fredericksburg area

By CATHY JETT

Date published: 1/13/2005

By CATHY JETT

Cindy Perry figured the biggest prize would be buried the deepest at a fund-raiser Krispy Kreme held yesterday outside its soon-to-open store in Central Park.

So the Riverview Elementary School PTO parliamentarian pushed her bright red shovel into a sandbox filled with black plastic Krispy Kreme coffee mugs and started to dig.

And dig.

And dig.

Finally, Darlene Grimm, PTO secretary, couldn't stand it any longer.

"Just grab the one by your foot!" she cried.

Perry followed her suggestion and found what she was looking for: a certificate for $2,000 worth of Krispy Kreme partnership cards, which was the day's biggest prize. Each card sells for $10, and entitles users to a free dozen glazed doughnuts with the purchase of a dozen of their choice. The card can be used up to 10 times.

Perry said Riverview, in Spotsylvania County, will sell its cards and use the proceeds to fund a number of PTO projects.

"Oh, my gosh! Our kids are going to flip!" she said.

Perry's group was one of about 40 Fredericksburg area nonprofit organizations invited to the Dig for Dollars fund-raiser that Krispy Kreme held outside the nearly completed building in Central Park. The store is slated to open in March.

"It's a fun way to get the community together rather than at a regular groundbreaking," said Becky Shell, who handles new store openings for the chain.

Yesterday's event was a bright spot for 67-year-old Krispy Kreme, which is experiencing dark days. The company is facing allegations that it padded sales. Last week, it restated its earnings for fiscal 2004. The new report trimmed profits by 8.6 percent and sent its stock tumbling.

"I think [yesterday's event] puts the proper emphasis on the type of company they've been all along," said Sherry L. Jarrell, a Wake Forest University management professor who follows the Winston-Salem, N.C.-based company.

"They've been doing this type of partnering with the community for decades. It's not something they came up with as a photo op just to try to distract the press from other issues," she said.

The company last week said in a prepared statement that the changes in its bottom line place it in potential default of a $150 million credit line.

Jarrell, however, is hopeful that Krispy Kreme will recover.

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Date published: 1/13/2005