Krispy Kreme’s chief operating officer, John Tate, has resigned to accept a position with retailer Restoration Hardware. The change comes in the wake of the company’s first earnings loss and the announcement that the Securities and Exchange Commission would conduct an informal inquiry concerning Krispy Kreme’s franchise reacquisitions and reduction in earnings guidance.

“We appreciate all of John’s contributions to Krispy Kreme over the last four years and wish him well in his new opportunity,” said Krispy Kreme chairman, president, and chief exec Scott Livengood in a statement.

Livengood will assume the COO’s responsibilities effective immediately.

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