Incompetency For Corruption
It is largely assumed that Friedman’s 2004 bankruptcy was brought about by internal corruption and lack of business ethics by top executives which led to investigations by the United States Department of Justice and the SEC, and a subsequent delisting from the NYSE.
Many former employees maintain that when Friedman’s emerged from the 2004 bankruptcy after being purchased by hedge fund Harbinger Capital Partners, an era, albeit a short one, of severe incompetency and ineffectual leadership conducted by the new board of directors, company officers, and other key executives resulted in the 2008 bankruptcy, which ended with the liquidation of both Freidman's and Crescent. One early move that was derided by many employees was the decision to move the corporate headquarters (located in a building that Friedman’s owned) from Savannah, GA to Addison, TX.
Other contributing factors that led to the 2008 bankruptcy included (but were by no means limited to): a less than capable IT department, poor merchandising strategies, a debilitating corporate bureaucracy, and inadequate store operational leadership.
Read more about this topic: Friedman's Inc.
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