Ray Kelvin: Ted Baker CEO resigns following allegations of 'forced hugging' and getting employees to sit on his lap

'The past few months have been deeply distressing and I'll now be taking time privately with my family,' fashion chain founder says

More than 200 employees have accused Kelvin of inappropriate comments and behaviour (Getty)

Ted Baker founder Ray Kelvin has resigned as CEO with immediate effect following allegations of sexual harassment.

The fashion chain boss had been on a voluntary leave of absence since December last year after an online petition was launched by more than 200 employees who accused him of inappropriate comments and behaviour, including “forced hugging”.

Mr Kelvin, 63, was also accused of massaging employees, kissing their ears and asking some to sit on his lap.

“He took off his shirt on one occasion and talked about his sex life. So many people have left the business due to harassment, whether that be verbal, physical or sexual," their petition read.

An internal independent committee has been in the process of investigating the allegations alongside law firm Herbert Smith Freehills.

The company said in a statement that the primary focus of the remainder of the investigation would centre on “Ted Baker's policies, procedures and handling of complaints.”

Mr Kelvin, who founded Ted Baker in 1988 and owns about a third of the retail chain’s stock, has denied any wrongdoing.

Executive chairman David Bernstein said: “Ray Kelvin founded the business 32 years ago and has, together with the fantastic team around him, been the driving force behind it becoming the global brand it is today.

”As founder and CEO, we are grateful for his tireless energy and vision. However, in light of the allegations made against him, Ray has decided that it is in the best interests of the company for him to resign so that the business can move forward under new leadership.

“As a board of directors, we are committed to ensuring that that all employees feel respected and valued.”

Mr Kelvin himself said that stepping away is the "right thing to do".

He said: "The past few months have been deeply distressing and I'll now be taking time privately with my family to consider what my next adventure will be."

David Bernstein has been appointed as executive chairman to provide additional support and Lindsay Page will continue in the role of acting chief executive.

Mr Bernstein added: "We are determined to learn lessons from what has happened and from what our employees have told us and to ensure that, while the many positive and unique aspects of Ted's culture are maintained, appropriate changes are made."