Lyndhurst, NJ–Franklin Karp has resigned as president and CEO of Harvey Electronics following shareholder approval of a cash-for-equity deal led by Trinity Investment Partners LLC. The transaction, which was put to a vote on Friday, October 27, will provide the New York-area A/V chain with a $4 million infusion, and will give Trinity and its investment partners control of Harvey’s board.
Trinity Investment replaced Karp, a 15-year veteran of the company, with Martin McClanan as interim CEO. McClanan was formerly CEO of RedEnvelope, a direct-sell gift business, and was president of Flax Art & Design, a San Francisco art supply house. He has also held sales and marketing positions with Nestle and Ernest and Julio Gallo Winery.
The transaction is expected to close in two weeks. At that time, D. Andrew Stackpole, Trinity’s founder and a former managing director in Merrill Lynch’s Global Consumer Products group, will become chairman of Harvey, and the investment groups will receive $4 million in convertible preferred stock in exchange for the cash infusion. Trinity is a private equity firm comprised of former Fortune 500 CEOs.
Harvey has said the investment is critical to the ailing business as it seeks to transform itself from a traditional retailer to a custom installer and integrator.
Harvey Electronics currently operates a total of nine locations in the New York metro area, eight Harvey showrooms, and one separate Bang & Olufsen branded store.
For more, visit www.harveyonline.com.