Share Price Of Ted Baker Plunge Amidst ‘Forced Hugging’ Complaints

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    Photo by Edwardx from Wikimedia Commons

    The share price of Ted Baker experienced further decline last Thursday morning as the City continued to learn about the news of the harassment allegations that are surrounding the boss of the luxury retail firm. Its shared decline by more than 10 percent.

    By the end of the day, its shares decline by nearly 11 percent to 1,387p after having plunged by 15 percent last Monday.

    Last Monday, the board of the FTSE 250 company said that it had launched a “thorough and urgent” external probe into the business and Ray Kelvin, the company’s chief executive, who is also the founder of the company.

    A spokesperson for the firm said that the company could not currently release statements regarding a timeline. He confirmed that Kelvin would still remain in his position during the investigation.

    It is scheduled to give a trading update on Thursday.

    The petition claims to represent 200 employees and has 2,500 signatures. It says that there are 50 recorded incidents of harassment at the firm. It claims that the complaints have been disregarded by the human resources department of the company.

    It accuses that Kelvin makes sexual innuendos regularly. It also says that he has asked young female staff members to sit on his knee or allow him to massage their ears.

    The petition states: “[Kelvin] tries to massage people around the office, insists on long hugs with staff members, touches them inappropriately and openly asks his staff for sex.”

    It continued: “The general feeling inside Ted Baker is that there’s no official way to address the issue of harassment. That’s why we’re running this campaign.”

    In a statement that was released by the company over the weekend, it said that it has “very clear and robust HR policies in place.” It said that hugs are “part of Ted Baker’s culture, but are absolutely not insisted upon.”