The Associated Press
RAVENNA, Ohio - Krispy Kreme Doughnuts Inc., which has blamed the nation's obsession with low-carb dieting for its financial woes, is closing a northeast Ohio doughnut plant, citing oversupply.
The Winston-Salem-based company said it will shut its $4.6 million plant in Ravenna on Oct. 16 because too many doughnuts are being made and not sold. The plant opened last June and employs fewer than 75 people.
Krispy Kreme hopes to place as many Ravenna plant employees as it can at area stores, company spokeswoman Amy Hughes said.
In May, Krispy Kreme reported its first quarterly loss since it went public in 2000. Then in July, the company said it was under scrutiny by the Securities and Exchange Commission over the company's repurchase of franchises and for a profit warning.
After hitting a high of $39.74 in March, shares fell as low as $11.56 in September. The company's stock closed Tuesday at $13.34, up 23 cents, on the New York Stock Exchange.
