Shares in Ted Baker down on hug-gate
LONDON: Ted Baker risks becoming Toxic Brand.
Shares in the retailer lost almost a quarter of their value on Monday and Tuesday after the company said it would undertake an external investigation into the behaviour of founder and chief executive officer Ray Kelvin.
The inquiry follows reports in the Observer and the Sunday Times that staff at Ted Baker Plc had filed a petition against Kelvin, accusing him of creating a culture of routine hugging and other improprieties.
It really should not have taken newspaper articles to flag this to the board. These senior officials should have realised that with the #MeToo movement, this kind of culture can make some people, particularly young women, feel uncomfortable.
Kelvin, who owns 35% of the company, is well-known in the industry as an eccentric who rarely shows his face in photographs.
His quirks have helped to make Ted Baker into a recognisable and successful brand. — Bloomberg