Long-time Harvey Electronics employee and recent CEO and president, Franklin Karp, has resigned his position, citing that he will pursue other interests. Karp was with the company for 15 years. To replace him, Harvey’s board of directors appointed Martin McClanan as Interim Chief Executive Officer. McClanan is a retail executive who was the CEO of RedEnvelope, Inc. and President of Flax Art & Design. He has also held positions in marketing and sales management at Nestle and the Ernest and Julio Gallo Winery.
This year Harvey Electronics has not seen the best of times. Since the beginning of 2006 the company has seen decreasing net sales, and in June received a notice that it was to be delisted on the NASDAQ stock exchange. Earlier this month, Harvey was granted a conditional listing, provided that the company offers a reverse stock split and accept an investment of $4 million by Trinity Investment Partners, LLC., both of which must be implemented by November 15.