Ted Baker’s founder and CEO Ray Kelvin has resigned from the company following allegations of inappropriate behaviour towards employees.
Kelvin took a voluntary leave of absence in December after the company’s board learned of “further serious allegations” regarding his conduct.
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The move came just a week after the lifestyle brand appointed independent law firm Herbert Smith Freehills LLP (HSF) to conduct an external investigation into the allegations levelled at Kelvin – including claims he reportedly forced hugs and kisses on employees.
While Kelvin has denied all allegations of misconduct, he today (4 Mach) agreed to resign with immediate effect from his position as CEO and as a director of Ted Baker Plc.
Acting CEO Lindsay Page will continue in this role while the board has asked David Bernstein to act as executive chairman to provide additional support.
Ted Baker said Bernstein has indicated that he will continue in this position until no later than 30 November 2020, by which time a successor will be appointed.
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By GlobalDataMeanwhile, the investigation into the allegations will continue, with the primary focus being on Ted Baker’s policies, procedures and handling of complaints. It is expected that HSF will conclude its investigation at the end of the first quarter or early in the second quarter of 2019.
“Ray Kelvin founded the business 32 years ago and has, together with the fantastic team around him, been the driving force behind it becoming the global brand it is today,” said Bernstein. “As founder and CEO, we are grateful for 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.
“As a board of directors, we are committed to ensuring that all employees feel respected and valued. We are determined to learn lessons from what has happened and from what our employees have told us and to ensure that, while the many positive and unique aspects of Ted’s culture are maintained, appropriate changes are made.
“Led by Lindsay, we are confident that the strong and experienced team we have in place will build the Ted culture and move the business forward.”
Shares in the UK lifestyle brand tumbled by more than 11% last week as it warned it expects full-year profits to be lower than expected.
