Friedman's Facing Growing Trouble as CEO Quits

Friedman's board of directors has elected Robert Cruickshank as non-executive chairman of the company and named Richard Cartoon as interim Financial Consultant following the resignation of CEO Bradley Stinn and the firing of CFO, Victor M. Suglia.

Cruickshank and Cartoon, together with Douglas Anderson, Friedman's President and Chief Operating Officer, will form an Office of the Chairman that will oversee the day-to-day operations of the company.

Stinn resignation from the company and its board of directors is effective immediately. The company says it will start looking immediately “qualified candidates” to replace him.

The company, the third largest US jewelry retailer, is facing a SEC investigation and increasing debt from unpaid loans given to customers that forced the company to set a side more money to cover them, just to name a couple.

“We are committed to taking the appropriate actions to address the challenges facing our company,” said Cruickshank. “The company performed well over the critical Thanksgiving weekend and we are optimistic about the holiday season”.

Friedman's also announced that, due to technical defaults under its credit facility, the company has suspended payment of its dividend. The company is in discussions with its lenders about this matter and about a waiver of the defaults.