Ted Baker launches investigation into harassment claims against ‘forced hugs’ boss
Ted Baker has launched an internal investigation into claims its chief executive and founder harassed female staff members.
The FTSE 250 firm’s shares took a dive this morning, dropping more than 14 per cent in early trading.
In an statement released today, the fashion retailer’s board said it has launched a “thorough and urgent” external investigation into the business and its boss, Ray Kelvin.
Staff at Ted Baker launched a petition calling for an end to a culture of “forced hugs” and unwanted attention from Kelvin, who launched the company’s first store in 1988, accusing him of inappropriate behaviour and comments to staff.
In a statement, the company said: “Ray, and the company’s leadership, have always prided themselves on Ted Baker being a great employer and business to work with. Accordingly, they and the board take these concerns very seriously and the board has directed a thorough and urgent independent external investigation is carried out into these matters.”
It said: “An independent committee of the non-executive directors has been appointed to ensure that the views and concerns are recognised and carefully considered and that appropriate responses are taken forward”
A spokesperson for the company told City PM the company could not comment on a timeline currently, and confirmed Kelvin would remain in his role during the probe.
It is due to give a trading update on Thursday.
The petition, which claims to represent 200 staff and has 2,500 signatures, says there are 50 recorded incidents of harassment at the company, which it claims have been disregarded by its human resources department.
It alleges that Kelvin regularly makes sexual innuendos, and has asked young female staff members to sit on his knee or let him massage their ears.
“[Kelvin] tries to massage people around the office, insists on long hugs with staff members, touches them inappropriately and openly asks his staff for sex,” the petition says.
“The general feeling inside Ted Baker is that there’s no official way to address the issue of harassment,” it added. “That's why we're running this campaign.”
In a statement over the weekend, the firm said it has “very clear and robust HR policies in place”. It said hugs are “part of Ted Baker’s culture, but are absolutely not insisted upon”.