As Eatontown, NJ-based New World Restaurant Group (NWRG) revealed last week that its founder has stepped down as chairman and its CFO has been fired “with cause”, the Securities and Exchange Commission (SEC) announced that it would conduct an informal investigation into the matters.
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Ramin Kamfar, the 38-year-old former chairman who left a US$500,000-a-year investment banking job to establish NWRG in 1993, was paid US$1.4m in connection with his departure. He has also resigned from the company’s board of directors to pursue other business interests.
NWRG named Anthony Wedo, who replaced Kamfar as CEO last August, to the added post of chairman. In a statement, Wedo said: “The board wishes to thank Kamfar for his years of dedicated service in building the company.”
The NWRG became the largest bagel-shop chain in the US after Kamfar led its acquisition of the bankrupt Manhattan Bagel chain in 1998, for US$15m and takeover of the bankrupt Einstein/Noah Bagel Corp last year for US$190m. The latter deal also led to NWRG’s delisting from the Nasdaq stock market in November, however, for violating two exchange rules.
In the prepared statement, NWRG revealed that it fired “with cause” its executive VP and CFO, 45-year-old Jerold Novack, effective today [Tuesday]. No further details were available.
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By GlobalDataThe SEC will also be looking into the group’s delay in the filing of its Form 10-K for fiscal 2001.
NWRG controls 750 company-owned, franchised and licensed stores, including 54 in New Jersey.
