Ted Baker’s share price fell sharply on Monday as the company is set up a committee of directors to consider the findings of an investigation into staff complaints about the behaviour of its founder, Ray Kelvin.
Shares dropped nearly 13% on Monday after more than 60 staff have came forward to the employee campaigning platform with complains against Kelvin’s alleged behaviour. These accused behaviours are kissing ears, giving unwanted hugs and shoulder massages. A petition housed by Organise and has gained more than 2,500 signatures on Monday. The number of former and current staff signatures has risen from 200 to 300 since Friday.
It said in a statement: “Ted Baker has always placed great importance on the company’s culture and owes everything to the commitment of our people. It is critically important to us that every member of our staff feels valued and respected at work.
“Ray greets many people he meets with a hug, be it a shareholder, investor, supplier, partner, customer or colleague. Hugs have become part of Ted Baker’s culture, but are absolutely not insisted upon.
“Having very recently been made aware of the petition, we are now in dialogue with Organise to understand the details and nature of the claims.”
Ted Baker said there were “very clear and robust HR policies in place to provide all employees with a wide range of reporting options for any issues that they might encounter, including a completely confidential and anonymous, 24/7 helpline”.
Ted Baker, named after an alter ego of Mr Kelvin, opened its first store in Glasgow in 1988 and now has 544 outlets worldwide selling fashion and accessories.
Mr Kelvin is worth £522m according to the Sunday Times Rich List.
