MGL Asset Management has offered to buy Krispy Kreme Doughnuts for $7.25 per share, Food Business Review reports. It will also assume the company's debt, valuing the deal at $500 million.

"This company has incredible potential, but it can't reach that potential simply being operated as a cost-cutting venture,” Dee Guess, managing director of MGL, told the Associated Press. 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