(Sharecast News) - Ted Baker has appointed a representative of founder Ray Kelvin to its board as part of a deal between the company and its former boss.
Colin La Fontaine Jackson has joined the clothes retailer's board with immediate effect. Kelvin, who owns 11.8% of the company, is allowed to appoint a non-executive director for as long as his stake is at least 10% under the relationship agreement, Ted Baker said.
Kelvin left the company in March 2019 over allegations of "forced hugging" and other inappropriate behaviour towards employees that he denied. His departure preceded a string of profit warnings and a period of management upheaval at the company.
Ted Baker said the agreement "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".
Kelvin has been rumoured to be considering leading a private equity bid for the company he founded in 1988. Ted Baker said the agreement with Kelvin formalised his relationship with the company through the board.
Ted Baker shares fell 5.5%to 104.7p at 10:43 BST.
Jackson is a corporate finance adviser who runs his own firm, Hopton Advisers. After qualifying as a solicitor at Clifford Chance he worked at Quayle Munro, ING Barings and Charterhouse Securities.
John Barton, Ted Baker's chairman, 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."
Kelvin's stake in Ted Baker more than halved in June when the company raised £105m to help see it through the Covid-19 crisis. The company struck a £79m sale and leaseback deal on its London head office earlier in 2020 to strengthen its finances.
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