Ted Baker concludes misconduct investigation of its founder

Ted Baker concludes misconduct investigation of its founder

Ted Baker shares plunge after value of inventory overstated by £58m

Ted Baker (LON:TED) has announced that the independent misconduct investigation into the actions of its founder and former CEO Ray Kelvin has been concluded. Moreover, Lindsay Page has been appointed Chief Executive Officer with immediate effect.

Ray Kelvin, who founded the apparel chain in 1988, resigned from his Chief Executive role in March with immediate effect amid the investigation into allegations of personal misconduct.

Ted Baker has said it will not comment on the specific allegations that were made against Ray Kelvin. Allegations include giving unwanted hugs and inviting female employees to sit on his knee, which originally emerged following an online position on the site Organise.

The investigation was carried out by the law firm Herbert Smith Freehills (HSF), who interviewed a significant number of people, including current and former employees of the company.

“We are determined to learn from this process and, moving forward, cultivate a better environment for all employees where they always feel respected and valued. We are implementing changes and improvements and are committed to developing best-practice HR policies and procedures that reflect the Ted culture we are looking to develop and enhance in the future,” Executive Chairman David Bernstein commented in a company statement.

The company will be taking several actions following the investigation. These include the renewal of training for all employees on HR policies and procedures and on acceptable workplace conduct and maintaining an independent and confidential whistleblowing hotline.

Additionally, Lindsay Page, who joined Ted Baker as Group Finance Director in 1997, has been appointed Chief Executive Officer of Ted Baker with immediate effect.

Elsewhere, Karren Brady made headlines earlier this year after resigning as chair of the holding company for Sir Philip Green’s Arcadia Group, Taveta Investments, as a result of the misconduct allegations that emerges against Sir Philip Green.