Friedman’s Says Business As Usual Despite De-listing

US jewelry chain Friedman's Inc said it is “disappointed” with the New York Stock Exchange’s decision to suspend trading in its shares adding that the de-listing does not affect its day-to-day business operations.

Friedman's said it is considering an appeal against the NYSE decision, which came after its CFO and two directors quit.

Although its common stock is not eligible for regular trading, Friedman's said it “understands that market makers have independently begun to make a market in the company's common stock on the Pink Sheets” under the symbol "FRDM.PK" rising 0.55 points on Wednesday to close at $2.65.

Trading in the Savannah, Georgia-based company had been halted since May 6 when it traded at $4.97.

The NYSE, in announcing its de-listing decision, also noted that the company failed to submit its Form 10-K filing for the fiscal year ended September 2003.

In addition to the resignation of its CFO and two directors, embattled Friedman’s is under investigation for its accounting practices.

It faces investigation due to a fraud lawsuit filed by Capital Factors Inc against a company that supplied jewelry to Friedman's and others.

 
The company is also under investigation by the Justice Department and the Securities Exchange Commission and is in the process of restating its financial results for at least the last three years because of accounting for bad debts.
 
Only last month it received official notice that the SEC is considering civil action against the firm over accusations of securities law violations.