I had an Am. Classic front hub fail about 15 years ago in the same manner. The bike was in the garage when it happened. 10 k miles is not enough service. Replace it with a shimano. I have never had a shimano hub break in over 200,000 miles of rising.
You won't like the IRD rims either. I have replaced two of them and the latest was so poory made that the brakes shutter when applied. The rim walls are not parallel.