NEW YORK (CNN/Money) - Embattled accounting firm Arthur Andersen LLP, which is fighting a federal indictment, hired investment bank Gleacher Partners to advise on strategic and restructuring alternatives as it begins to implement reforms.

Chicago-based Andersen said it is beginning to execute the structural and operational changes associated with reforms recommended by former Federal Reserve Chairman Paul Volcker.

Volcker, who heads an independent board charged with implementing change at the firm, has called for Andersen to split off its consulting unit and return to a pure audit firm.

Volcker's recommendations also include installing a seven-member independent board that will take control of Andersen. CEO Joseph Berardino resigned last week shortly after Volcker called for a change in Andersen senior management.

"We are pleased to have Gleacher by our side as our financial advisor to assist us in conducting an orderly and thorough evaluation of all our options for maximizing value for all of our stakeholders, and we will move ahead with this initiative as expeditiously as possible," said Larry Gorrell, managing partner of Arthur Andersen.

Andersen has reportedly been in talks to sell its non-audit businesses which include tax, consulting and corporate finance. Andersen could also merge or spin off the practices, industry observers have said.

Andersen has teetered on near collapse since the Department of Justice hit the accounting firm last month with a one-count federal indictment. The agency alleges that Andersen obstructed justice when it shredded Enron Corp. documents.

Andersen, as Enron's auditor for 16 years before it was fired, signed off on the financial statements of the once-mighty energy trader. Enron allegedly used off-the-book partnerships to inflate profits and hide nearly $1 billion in debt.

Enron in December filed the largest bankruptcy in U.S. history in December. For its part, Andersen broke off merger talks with KPMG International earlier this week. The two firms were in negotiations to combine their non-U.S. businesses. Andersen also failed to sell or merge all or part of its businesses to rivals Ernst & Young and Deloitte Touche Tohamatsu last month.

Both Andersen and Gleacher could not immediately be reached for comment Wednesday.

Separately, Andersen suffered another partnership defection Wednesday when its Singapore affiliate agreed to merge with Ernst & Young.

The combined firm in that region will be known as Ernst & Young Singapore. The integration, which is still subject to the completion of due diligence and regulatory and partner approval, is expected to be completed in the coming weeks, Ernst said.

So far Ernst & Young has scored four Andersen member firms and is in talks with several others, a spokeswoman said. Andersen's practice in Australia agreed to join Ernst last week, which followed decisions by New Zealand and Russia to break ranks and also join Ernst.

Press reports said that Andersen practices in the Philippines, Malaysia and Taiwan were also set to join Ernst.

A spokeswoman for the firm declined comment but said that Ernst Global CEO Bill Kimsey is now in Asia and heading talks with Andersen practices in that region.

"Talks are progressing well," the spokeswoman said.

Andersen suffered another key defection on Tuesday when its practice in Spain bolted and joined Deloitte Touche Tohmatsu.

Since announcing the merger negotiations with KPMG on March 18, several Andersen member firms around the world have chosen to break away and join rival firms. Australia, New Zealand, Russia and Singapore are now set to join Ernst, while Andersen affiliates in China and Hong Kong have agreed to join PricewaterhouseCoopers. And Deloitte picked up Spain.

Some Andersen practices have opted to stick with the proposed KPMG merger. Affiliates in Germany and the United Kingdom are still in negotiations with KPMG while Andersen's Canada operation has signed on to join KPMG. Andersen's Thai affiliate also reached a preliminary agreement to join KPMG, press reports said.

Separately, Andersen Worldwide SC, the worldwide parent organization that oversees the U.S. partnership, continues to meet in London. The Worldwide board is still expected to pick an interim CEO to replace Joseph Berardino, who resigned last week, a spokeswoman said.

On Tuesday, Andersen's merger talks with KPMG took priority over the issue of picking Berardino's successor, a source familiar with the situation told CNN/Money Tuesday.

"[Picking] an interim CEO is just one of many discussions," an Andersen spokeswoman said Wednesday.

The board could pick the CEO sometime Wednesday but an announcement could also come later this week, the spokeswoman said.