Friedman’s Says Top Officers Stepping Down

Troubled U.S. fine jewelry retailer Friedman's Inc today (Monday) announced that Executive Chairman Allan Edwards will step down at the end of his term next month after just eight months in the top job.

In addition, Chief Financial Officer Richard Hettlinger also stepped down as of December 10 after little more than a month in the financial hot-seat. His predecessor Richard Cartoon resigned in May after just five months in the job.

Edwards was named Executive Chairman in May in the midst of government investigations and numerous business challenges.

During his tenure, Friedman's has hired new management, refinanced its credit facility, and developed a trade creditor support program. He also restructured the firm’s board.

Friedman's said it is looking for a new Chairman.

Meanwhile, Ken Maher has been named interim CFO of Friedman's effective as of today. He most recently served as Vice President and Controller of Wickes Furniture, a furniture distribution and retailing company.

Friedman’s is facing two major investigations, one by the US Securities and Exchange Commission (SEC), 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.

The SEC said in October that its officers are considering recommending that it authorize public administrative proceedings to determine whether the registration of Friedman's shares should be revoked or suspended.

In the event that registration of Friedman's shares is suspended or revoked, the shares will no longer trade on the Pink Sheets.

Friedman’s common stock has not been eligible for regular trading since the New York Stock Exchange de-listed the firm’s shares in May.

Since then, market makers have independently traded the company's common stock on the Pink Sheets.