Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Ted Baker names insider as boss after founder quits over 'hugging' row

Stock MarketsApr 11, 2019 04:45AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Shoppers walk past a Ted Baker store on Regents Street in London

By Noor Zainab Hussain

(Reuters) - British fashion retailer Ted Baker named a company veteran as its boss on Thursday, also introducing changes to workplace standards as it looked to draw a line under misconduct allegations against founder and outgoing CEO Ray Kelvin.

Ted Baker said interim head Lindsay Page, who joined as finance director in 1997, would take over as chief executive officer with immediate effect.

Kelvin, who had been CEO since the company's launch in 1988, resigned last month over claims he presided over a culture of "forced hugging".

The company said an independent panel had ended its investigation into the allegations involving Kelvin and recommended changes to the workplace culture - including a review of HR procedures and a whistleblowers' hotline - which it would implement.

It said it would not comment on the claims against Kelvin, who has denied all allegations of misconduct.

He remains the company's biggest shareholder with just under 35 percent, according to Refinitiv Eikon data.

Ted Baker's stock fell 43 percent in value in 2018, and last month it reported its first drop in annual profit since the 2008 financial crisis, highlighting the tough conditions on Britain's high streets.

Its shares rose 2.2 percent to 1,521 pence after Thursday's statement.

"The appointment of Lindsay Page as CEO and the conclusion of the HSF investigation should now draw a line in the sand in what has been an unfortunate process," Liberum analysts said.

"His (Page's) appointment makes imminent sense and represents the smoothest of all transitions to a person that has (an) incredibly long pedigree at Ted Baker."

LEARNING LESSONS

Retailers are facing a perfect storm of rising costs, slowing growth and the hit to uncertainty spurred by Britain's chaotic departure from the European Union.

Ted Baker, which opened its first store in Glasgow in 1988 and now has more than 500 outlets and concessions globally, had however reported solid Christmas sales, with the quirky detailing on its suits, shirts and dresses helping the company stand out from rivals.

"Questions have been raised about the loss of creativity now Kelvin has gone," said Laith Khalaf, Senior Analyst at brokerage Hargreaves Lansdown (LON:HRGV).

"But Ted Baker is a company worth more than half a billion pounds, it’s not solely reliant on the flair of just one man."

It said it had renewed training for all employees on HR policies and procedures and on acceptable workplace conduct.

The company will also maintain an independent and confidential whistleblowing hotline and enhance oversight of both people and cultural matters at board level.

"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," Executive Chairman David Bernstein said.

Ted Baker names insider as boss after founder quits over 'hugging' row
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email