Tim Webster, chief executive officer of troubled American Italian Pasta Co., has resigned, the company said Monday.

Jim Fogarty, a managing director for Alvarez & Marsal LLC who had been serving as co-chief executive with Webster, will take over immediately as CEO, American Italian Pasta said. Webster’s resignation was effective Sunday.

Officials at the Kansas City, Mo.-based company hired Alvarez & Marsal in September to help buoy the company’s sagging finances.

Webster also resigned his seat on the board of directors.

In August, the company said that it wasn’t able to issue third-quarter earnings because of an internal investigation of accounting problems.

Since that announcement, the company’s stock has plummeted more than 70 percent in value. Shares of American Italian Pasta gained 3 cents to close at $6.44 in trading Monday on the New York Stock Exchange.