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RAVENNA, Ohio - Krispy Kreme Doughnuts, which has admittedly suffered sticky financial setbacks amid the nation's obsession with low-carb dieting, will close a northeast Ohio doughnut plant here Oct. 16.
The company said it will close its $4.6 million Ravenna, Ohio plant, which had only been open a little more than one year and that employs fewer than 75 people. The closure was prompted by the inverted supply/demand ratio that found too many doughnuts being made but not sold, according to published reports.
Krispy Kreme in May reported its first quarterly loss since going public in 2000; this past July, the company said it was under scrutiny by the Securities and Exchange Commission over its repurchase of franchises and for a profit warning.
After hitting a high of $39.74 in March, shares fell as low as $11.56 in September.