Financial Scandal The company has been accused of channel stuffing by franchisees, whose stores reportedly "received twice their regular shipments in the final weeks of a quarter so that headquarters could make its numbers".Krispy Kreme was also dogged by questionable transactions and self-dealing accusations over the buybacks of franchisees, including those operated by company insiders. A report released in August 2005 singled out then-CEO Scott Livengood and then-COO John W. Tate to blame for the accounting scandals although it did not find that the executives committed irregularities.
