Ted Baker under fire over botched board shake-up
Ted Baker’s efforts to draw a line under a harassment scandal involving its founder were undermined after the company appointed an insider to the top job.
Ray Kelvin, 63, who set up Ted Baker in 1988, resigned following a string of allegations by staff of inappropriate behaviour including ‘forced hugging’.
Ted Baker insisted it had learned lessons from the scandal and has said it will send staff on training courses to teach them about appropriate workplace conduct.
But the decision to promote former chief operating officer and interim chief executive Lindsay Page to the top job full time may have undermined its attempts to move on.
A top shareholder questioned whether Page, who worked with Kelvin for more than 20 years, was the right person for the role.
The investor said: ‘First of all, Lindsay is 60 years old. He’s a nice guy but the question is how long is he going to be chief executive? He is one of Ray’s closest lieutenants and has known Ray for 25 years. Lindsay and Ray used to go fishing together in Slovenia on holiday so they’re buddies. That’s why you question is that a line in the sand?
‘If you’re looking for change, that’s not the change you’re looking for.’
The shareholder also questioned chairman david Bernstein’s decision to withhold the findings of an investigation into the claims against Kelvin, saying it was unclear whether wrongdoing had been identified and Ted Baker was vulnerable to legal action. ‘I’m more concerned about the chairman than anyone else,’ the shareholder said.
‘given that he doesn’t reveal the findings of the investigation, it raises an eyebrow, two eyebrows.’
Shares fell 1.9pc, or 28p, to 1460p last night.
Announcing the shake-up, Bernstein said: ‘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.’
Russ Mould of AJ Bell, added: ‘If Ted Baker was really looking for a fresh start after the harassment allegations against its founder and erstwhile chief executive Ray Kelvin you could question why it has made an internal appointment as his replacement.’