That’s a lot of donuts!

donut.jpegYesterday, Krispy Kreme (KKD) filed its long delayed 10-K for the fiscal year that ended in January and while most of the headlines were focused on the numbers, it was this exhibit attached to the K that caught my eye.

As most followers of this stock know, fix-it firm Kroll Zolfo Cooper has been providing management services to the company under an agreement that dates back to the dark days of January 2005. But earlier this year, the company hired new CEO Daryl Brewster and has been gradually been phasing out Kroll Zolfo’s role. Back in June, two of the top turnaround guys — Stephen Cooper and Steven Panagos — stepped down. But according to the exhibit, the arrangement with Kroll, which at one time was running as high as $800K a month, will continue with the firm serving in an advisory capacity.

So how much will that advice cost? Managing directors were charging as much as $730 an hour for their advice, with the fees for professional staff running anywhere from $125 an hour to $625 an hour and support personnel charging anywhere from $50 to $225 an hour. It’s not clear how those rates compare to the old fees, since I was unable to find an hourly schedule in any other filing, but the exhibit notes that Kroll adjusts its fees every six months. Indeed, these fees were in effect from January to June and were set to go up on July 1.

The exhibit also included something interesting about the $1.39 million that Krispy Kreme owes Kroll for professional fees and expenses provided between January 2005 and June 2006. It’s not clear from the filing exactly what that covers, but it sure covers a lot of donuts.