Krispy Kreme likely to miss deadline for financial report

Krispy Kreme Doughnuts Inc., which is under a federal accounting investigation, said it doesn't expect to meet a Dec. 15 deadline to release its financial statement and is in talks with its lenders about getting an extension.

"While the company is making substantial progress towards the preparation of such financial statements, it is highly unlikely they will be completed by the required date," Winston-Salem, N.C.-based Krispy Kreme said in a filing with the U.S. Securities and Exchange Commission.

Krispy Kreme hasn't reported earnings for four quarters as the SEC and federal prosecutors examine how the company accounted for the repurchase of franchises for its factory stores. The company in April arranged $225 million in loans to avert bankruptcy. It made an agreement with the lenders to submit audited results by Dec. 15.

The company is in "preliminary" discussions with its lenders about receiving an extension and expects it will obtain one, the doughnut chain said in the filing.