Milling & Baking News - February 1, 2005 - 9

B U S I N E S S

Krispy Kreme Doughnuts' lenders
agree to extension on credit line
WINSTON-SALEM, N.C. - Krispy Kreme
Doughnuts, Inc. lenders last week agreed
to defer until March 25 the deadline before
which the company would default on a
credit line. The extension was expected in
light of the donut chain's recent management reshuffling, which was viewed positively by the company's lenders.
The possible default, which comes as
a previous 10-day waiver expired, stems

from Krispy Kreme's failure to deliver financial statements for the quarter ended
Oct. 31.
According to Krispy Kreme, the
amendments provide for "a limitation on
the issuance, extension and renewal of letters of credit (other than renewals which
do not increase the amounts thereof)
without lender consent, a limitation on
additional revolving credit or swing loan

borrowings without lender consent and a
limitation on the creation of guarantees in
respect of debt incurred by the company's
joint ventures (subject to certain pending
and projected projects), whether or not
such financial statements are delivered."
Krispy Kreme is in the process of
restating its 2004 financial statements
due to errors in how it accounted for
repurchases of franchises. In an effort
to right the business, the company last
month hired Kroll Zolfo Cooper L.L.C.
to be its financial adviser and interim
management consultant. MBN

Explosion damages bulk flour plant
at ADM Milling facility in Enid

AP/WIDE WORLD PHOTOS

explosion had not yet been determined.
A local Enid television station called it a
flour-dust explosion and reported that the
area immediately surrounding the mill had
ENID, OKLA. - An explosion and fire Jan. mill could reopen, she said. The cause of the been evacuated in fear of subsequent explo24 at the ADM Milling
sions. The report said the
Co. flour mill in Enid
flour was being prepared
injured two workers
for loading into rail cars at
and severely damaged
the mill.
several buildings, acThe mill was down for
cording to the company
scheduled
maintenance
and press reports.
and only 5 of the usual
The explosion and
60 employes were pressubsequent fire occurred
ent when the explosion
in the area where bulk
occurred, Ms. Miller said.
flour is stored and blendOne employe was treated
ed, said Karla Miller, a
and released while another
spokesperson for ADM.
was transferred to the burn
The facility has the
unit at an Oklahoma City
capacity to store about
hospital, she said.
15,000 cwts of flour, but
According to the 2005
only 2,800 cwts were
Grain & Milling Annual, the
in storage at the time
facility has a daily milling
of the explosion. ADM
capacity of 16,500 cwts and
officials were assessing An explosion Jan. 24 severely damaged the bulk flour storage building at the ADM
storage capacity of 2,500,000
the damage Jan. 25 to Milling Co. flour mill in Enid, Okla. In the photo, Lt. Warren Rhodes of the Enid Fire
bus of grain. ADM bought
determine when the Department, hovers above the mill in a safety basket as he inspects damage.
the mill in 1992. MBN

New franchise group reaches deal
to develop 10 Panera bakery-cafes
RICHMOND HEIGHTS, MO. - Panera Bread Co. last week
reached agreement with a new franchise group to develop 10
Panera Bread bakery-cafes in San Francisco and Marin counties
in California. The Oakes/Cobo franchise group, led by principals
Glenn Oakes, David Cobo and Matt Cobo, will open its first Panera
Bread bakery-cafe by May 2006.
The Oakes/Cobo franchise group is a family organization bringing decades of franchise, real estate and business development experience to Panera Bread, said Mike Kupstas, senior vice-president
and chief franchise officer of Panera Bread.
"This kind of track record is critical to establishing Panera
Bread as a leader in northern California, a region where customers expect great bread and unique menu offerings," Mr. Kupstas
said.
Mr. Oakes has nearly 25 years of experience owning and operating Burger King Restaurants. David Cobo is a 32-year veteran of
the real estate industry, and Matt Cobo has spent a majority of his
career as an entrepreneur starting and eventually selling three successful technology organizations. MBN
bakingbusiness.com / world-grain.com

Lallemand/American raises
prices for fresh block and dry
yeast, effective Jan. 31
ADDISON, ILL. - Lallemand/American Yeast Division has
announced a price increase of 2c per lb on full pallet or greater
deliveries of fresh block yeast.
The price increase was to become effective Jan. 31 or as current contracts expire. Lallemand is raising prices 4c per lb for
quantities smaller than a pallet.
Lallemand also announced a corresponding 8c per lb price
increase for dry yeast in pallet quantities, with a 16c increase
for smaller quantities.
A 5c per lb freight differential imposed in 2004 in response
to transportation cost increases remains in effect for fresh block
and dry yeast and will apply uniformly across the Mountain
and Pacific time zones.
Rising energy and transportation costs, as well as advancing raw material and packaging costs, precipitated the price
increase, the company said. MBN

Milling & Baking News, February 1, 2005 / 9

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Milling & Baking News - February 1, 2005

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