Ted Baker chief executive Ray Kelvin has stepped down as head of the fashion chain amid allegations of sexual harassment, including “forced hugging”.
Kelvin, who founded the company in 1988, has been on a voluntary leave of absence since December, when an online petition signed by more then 200 former Ted Baker staff accused him of at least 50 incidents of sexual misbehaviour towards female employees.
“Staff claimed that as well as engaging them in unwelcome embraces, the brand's founder had asked young female members of staff to sit on his knee, cuddle him or let him massage their ears,” the BBC reports.
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The petition claimed: “So many people have left the business due to harassment, whether that be verbal, physical or sexual.”
On one occasion, Kelvin allegedly removed his shirt and “talked about his sex life”, says The Independent.
An independent internal committee, set up by Ted Baker’s board, commissioned law firm Herbert Smith Freehills (HSF) to investigate the allegations and the company’s response to them. It is expected to present its findings by early April.
Kelvin denies the allegations, but said he was stepping down as chief executive with immediate effect for the good of the company, which he called his “life and soul for over 30 years”.
“I've decided that the right thing to do is to step away from Ted and allow the business to focus on being the outstanding brand it is so it can face 2019 with fresh energy and renewed spirit,” he said in a statement.
Acting chief executive Lindsay Page will continue in the role, supported by executive chairman David Bernstein, who has said he will stay in post until November 2020.
In a statement, Bernstein said that Kelvin had been the “driving force” behind the global success of the brand, which has more than 500 outlets in the UK and abroad, and praised his “tireless energy and vision”.
“However, in light of the allegations made against him, Ray has decided that it is in the best interests of the company for him to resign so that the business can move forward under new leadership,” he added.
Shares in Ted Baker fell 4% when trading opened on Monday, but “quickly rebounded”, says the BBC.
