Ted Baker says its chief executive Ray Kelvin has “agreed to resign” as he faces allegations of inappropriate behaviour.
The fashion chain’s founder took a voluntary leave of absence in December after it launched an independent investigation into claims of forced hugs and harassment.
He has denied any wrongdoing.
Ted Baker said on Monday he had quit with immediate effect and its acting chief executive, Lindsay Page, had agreed to continue in the role until the appointment of a permanent successor, with David Bernstein acting as executive chairman to provide additional support.
The company said its independent committee, which called in law firm Herbert Smith Freehills (HSF) to examine the allegations and its culture, was continuing its work.
The statement said the primary focus of the remainder of the investigation would centre on “Ted Baker’s policies, procedures and handling of complaints.”
It is expected to wrap up within weeks.
Mr Kelvin, who owns about a third of the company’s stock, left the business less than a week after Ted Baker had issued a profit warning on the back of a series of costs to the business.
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Mr Bernstein said: “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.
“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 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.
“Sharon Baylay has agreed to act as the designated non-executive director for engagement with the Ted workforce.
“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.”
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