Kelvin takes leave of absence in Ted Baker ‘hugs’ row

Retailing boss temporarily stands down after he is accused of straddling female worker at staff party

TED Baker boss Ray Kelvin, accused of giving employees unwanted hugs, is taking a leave of absence from the company following “further serious allegations” about his conduct.

The Daily Telegraph understands that the company received a fresh complaint that the 62-year-old boss had straddled a female employee at a staff fancy dress party.

With just three minutes of trading time left yesterday afternoon Ted Baker abruptly announced that chief operating officer Lindsay Page would be taking over as chief executive while Mr Kelvin was on leave.

The Ted Baker chief executive made the decision to step back after being told of the fresh allegations.

The retailer said it would not make “any further comment about the nature of the allegations that have been made while they remain under investigation”.

Ted Baker shares have tumbled by a fifth this week after the claims of “forced hugging” and inappropriate behaviour surfaced, in what has been a tumultuous time for one of the former darlings of the retail sector. Investors have been spooked as Mr Kelvin is still seen as the driving force of the company and its growth prospects. He remains heavily involved in the creative direction of Ted Baker’s fashion lines, as well as its international expansion.

It has already instructed law firm Herbert Smith Freehills to conduct an external investigation into allegations, which have included “forced hugs”, sexual innuendo, asking female employees to sit on his knees and massaging necks without permission.

The Telegraph also revealed that Mr Kelvin had angrily shoved an employee against a wall in the middle of Ted Baker’s office after learning that a couple of employees had not invited him to their wedding ceremony. The couple were paid off in a non-disclosure agreement and Mr Kelvin was reprimanded, Ted Baker has since confirmed.

The use of non-disclosure agreements have become increasingly controversial after it emerged that movie mogul Harvey Weinstein had used the gagging clauses to silence a number of sexual assault victims. A Telegraph investigation earlier this year also disclosed that staff who accused a businessman, later named in Parliament as Topshop boss Sir Philip Green, of alleged sexual harassment and racial abuse were paid large sums and also signed NDAS that prevented them discussing their claims.

Ted Baker’s board and the committee “have now been made aware of further serious allegations about the conduct of founder and chief executive officer Ray Kelvin, which it will also be investigating”, the company said. The decisions were made “for the benefit of the business and the people who work in it”.

Mr Kelvin said last night that the “accusations of the past week have raised some very serious and upsetting issues”. He added: “It is only right that the board and Herbert Smith Freehills should investigate fully.

“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.”

The allegations about the inappropriate behaviour surfaced in an online petition on Organise, which has now gathered around 2,000 signatures calling for an end to Ted Baker’s “forced hugs” policy. Pursuing the issue through human resources had been “hopelessly ineffective”, the employee behind the campaign claimed.

Nat Whalley, chief executive of Organise, said: “Ray Kelvin stepping away is a huge win, it means Ted Baker staff will get the proper independent external investigation they demanded through their Organise petition.”

Ted Baker said it had created a committee of non-executive directors to ensure an appropriate response to employee concerns.