Six Flags and Krispy Kreme Doomed?!

According to this Yahoo article, Six Flags and Krispy Kreme Donuts may become causalities of the economy this year, as we “consumers” continue to cut back. (Blockbuster is also on the list, but with Netflix around, that was probably inevitable.) I rarely ever go to Six Flags (not that I want it to close), but Krispy Kreme Glazed Doughnuts are my favorite donuts on the planet. I sure would be sad to see them go. I feel like going on a donut binge before their demise, but $4-$5 a dozen is a hefty price.

However, the article make an interesting point about why the company’s having problems. Quoting from the article (with parts bolded for emphasis):

The donuts might be good, but Krispy Kreme overestimated Americans’ appetite – and that’s saying something. This chain overexpanded during the donut heyday of the 1990s – taking on a lot of debt – and now requires high volumes to meet expenses and interest payments.

Bottom line: greed. (Cue “For the Love of Money” by the O’Jays.)

I will write a post about this phenomenon and what I think is the truth behind the financial downturn later.


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