Shares in Ted Baker down on hug-gate

The Star Malaysia - StarBiz - - Foreign News -

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

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