MGL Asset Management Group, a private equity company, has made an offer to purchase Krispy Kreme Doughnuts, a branded retailer and wholesaler of doughnuts.
The private equity company has reportedly offered to buy Krispy Kreme for $7.25 per share. MGL Asset Management has said that it will also assume the company's debt thus valuing the deal at $500 million.
The Associated Press quoted Dee Guess, managing director of MGL Asset Management, as saying: "This company has incredible potential, but it can't reach that potential simply being operated as a cost-cutting venture. The current management has learned how to stop the bleeding, MGL will take the company off life support and make it healthy again."
For quite some time now, Krispy Kreme has been going through rough weather. Increasing demand for healthier food, bankruptcy filings by several of its franchisees, and accusations of misconduct by former management have acted as hurdles in its growth. However, in June, after more than a year, the company reported profit in the first quarter.