Problem Ridden Friedman's Announces New Management Changes

Troubled US jewelry retailer Friedman's has named a new director and its second audit committee chairman since April.

Jamie King will serve as Audit Committee Chairman while Eric Kovats becomes Executive Vice President of Stores.

The additions are the latest in a series of changes that began in early May when the company overhauled its board and continued last month with the addition of a new CEO and a new Chief Administrative Officer.

Friedman’s is facing two major investigations, one by the US Securities and Exchange Commission and another by the US Justice Department. The investigations were initiated following a fraud lawsuit filed by Capital Factors against a company that supplied jewelry to Friedman's and others.

Friedman’s was de-listed from the New York Stock exchange in May. Just before that its CFO Richard Cartoon resigned after just five months on the job and two directors left after just two days.