Ted Baker’s ‘hugs’ chief steps aside

TED Baker founder Ray Kelvin has bowed to pressure and is taking a “voluntary leave of absence” after complaints of harassment.

The 62-year-old is standing aside from the fashion company after “further serious allegations” about his conduct were brought to the attention of the board.

The FTSE 250 firm set up a committee of non-executive directors this week to “ensure concerns are recognised” and appointed law firm Herbert Smith Freehills to carry out an independent probe after complaints by staff about behaviour including “forced hugging”.

It said: “The committee and the board have now been made aware of further serious allegations about the conduct of founder and chief executive Ray Kelvin, which it will also be investigating.

“Ray Kelvin has agreed, for the benefit of the business and the people who work in it, that he will take a voluntary leave of absence from his role while these allegations are investigated.” It will not make any further comment about the nature of the allegations while they remain under investigation and has appointed chief operating officer Lindsay Page as acting CEO. Shares fell 18p to 1493p.

Ted Baker chairman, David Bernstein, said: “I am confident that the business remains in a strong position to continue to deliver its long-term growth strategy.”

Kelvin said in a statement that the accusations had raised “some very serious and upsetting issues” and it was “only right that the board should investigate fully”.

He added: “Ted Baker has been my life and soul for 30 years. I love this company and I care deeply for all my colleagues.

“It’s for that reason that I have decided to take a temporary leave of absence. Ted Baker means everything to me and I can’t bear to see it harmed in any way.”