// Ray Kelvin resigned in March after the “forced hugging” scandal
// He will have his views represented by non-executive director Colin La Fontaine Jackson
Ted Baker founder Ray Kelvin will return to help oversee the running of the business for the first time since he resigned as chief executive due to “forced hugging” allegations.
Kelvin currently owns almost 12 per cent of the fashion retailer, but will not take a direct seat on the board.
Instead, he will have his views represented by non-executive director Colin La Fontaine Jackson as part of a new “relationship agreement”.
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He stood down in March last year after Ted Baker faced increased pressure to investigate allegations of misconduct.
Kelvin was replaced by his long-standing chief operating officer Lindsay Page but by December, Page had resigned after a string of profits warnings.
Ted Baker said Kelvin’s return “brings the benefits of access to Ray’s unique brand experience and insight, while at the same time introducing clear guidelines that will ensure board independence is maintained and that the interests of shareholders are prioritised and protected”.
Ted Baker chair John Barton said: “We are pleased to welcome Colin to the board and to be able to access Ray’s great experience in building the brand over the last 30 years as we continue to make progress with Ted’s new formula for growth.”
Last month, Ted Baker said it was planning on cutting 500 jobs across retail and its head office as part of its latest cost-cutting strategy to save £6 million by the end of the year.
It followed news that the struggling retailer had raised £105 million through a stock issue to help it survive through the Covid-19 crisis..
Ted Baker employs around 2000 staff in the UK across its head office, 46 stores, and dozens of concessions.
It has seen its shares drop by a colossal 89 per cent to 76p in the past year, valuing the company at £140 million.
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