London: Ted Baker Plc Chairman David Bernstein and interim Chief Executive Officer Lindsay Page resigned as the fashion chain goes through its most difficult year ever following a scandal over its founder’s workplace behaviour.
The UK retailer said Tuesday it’s suspending its dividend as pretax profit may drop to as little as 5 million pounds ($6.6 million) this year.
“The last 12 months has undoubtedly been the most challenging in our history,” the company said.
New Chief Financial Officer Rachel Osborne becomes acting CEO with immediate effect. Independent board member Sharon Baylay will be acting chairman until a replacement is found.
Last week, Ted Baker said outside lawyers and accountants will review an overstatement of unsold goods, deepening the woes of the UK fashion chain after founder Ray Kelvin resigned this year following reports of inappropriate workplace touching.
The company’s problems have multiplied in the past year amid three profit warnings and an investigation into Kelvin’s behaviour. He resigned in March after allegations he gave employees unwanted hugs and asked female staff to sit on his knee.