Ray Kelvin silent as probe into neck-kissing gets started

Ray Kelvin, boss and founder of scandal-stricken Ted Baker, on Thursday dodged questions about allegations of inappropriate behaviour amid lacklustre trading.

The company refused to comment on the debacle as it updated the City on performance. Kelvin, who typically speaks to the press each quarter, was not available and chief operating officer Lindsay Page said: “At this stage I can’t comment further on any of the recent reports, it would be inappropriate.”

Kelvin has kept a low profile since allegations emerged at the weekend that he had kissed the necks and ears of employees and forced hugs on staff. The retailer denies that hugging was “insisted upon”. The fashion brand also said it drafted in law firm Herbert Smith Freehills to investigate claims from employees. It will report to a committee of its non-executive directors, led by Sharon Baylay, who joined the business this summer.

Kelvin has also been accused of asking young female staff to sit on his knee.

Revenues edged down 0.2% for the 16 weeks to December 1, held back by unseasonal weather and a blip in wholesale, which fell 6.5%. The previous quarter, wholesale sales rose 14.2% thanks to getting stock into concessions sooner than anticipated.

“There is some lumpiness in timing — it looks soft but we’re absolutely not worried, we’re happy with the wholesale performance,” added commercial director Phil Clark.

Retail sales were up 2.6%, helped by strong online orders. But store sales were down around 3%. Adam Tomlinson, analyst at house broker Liberum said: “These numbers are better than a lot of people in the market had expected...they reflect the underlying resilience of the business.”

The share partially recovered from their five-year lows, up 73p to 1540p.

The retailer cautioned that the market remains challenging.