Ted Baker founder’s shares rise £15m since scandal as fashion chain sees sales soar
- Ray Kelvin was accused of harassing staff at the fashion chain
- He has a 35 per cent stake in the business he founded in Glasgow in 1988
Claim: Ray Kelvin was accused of harassing staff at the fashion chain where sales have risen
Ted Baker founder Ray Kelvin has made £15million from the rise in the firm’s share price since he faced allegations of sexual harassment and ‘forced’ hugging of staff.
Kelvin, who also served as chief executive of the fashion chain until the scandal broke last month, has a 35 per cent stake in the business he founded in Glasgow in 1988.
Shares in the fashion chain fell 22 per cent last month when staff complained about his alleged behaviour in an online petition.
But it appears shoppers ignored pleas from campaigners to avoid the stores over Christmas – and last week the company reported a 12.2 per cent rise in sales in the five weeks to January 5. That sent the shares soaring and they now sit 5.4 per cent higher than before the scandal broke.
Kelvin stepped back as chief executive following the allegations, which included forced hugging, sexual innuendos and asking female staff to sit on his knee.
Ted Baker has hired law firm Herbert Smith to oversee an independent investigation. It has previously said that Kelvin gave up handshakes in favour of hugs because of arthritis and said he greeted many people with a hug.