Ted Baker founder Ray Kelvin has appointed a representative to the company's board, 18 months after he quit as its boss amid a "forced hugging" scandal and claims of inappropriate behaviour towards staff.
The retailer has appointed Colin La Fontaine Jackson to be a nominee director on behalf of Mr Kelvin, who still owns almost 12pc of the business.
Mr Kelvin was forced to take a leave of absence in 2018 following claims that he hugged workers who were uncomfortable about it.
He was also accused of massaging employees, kissing their ears and asking some to sit on his lap. Mr Kelvin denies wrongdoing.
Mr La Fontaine Jackson's appointment is part of a relationship agreement which lets the company tap into Mr Kelvin's expertise for as long as he controls at least a 10pc stake.
Ted Baker said: "[This] brings the benefits of access to Mr Kelvin’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."
Mr La Fontaine Jackson founded corporate finance house Hopton Advisers in 2014 and previously worked at financial firms Quayle Munro, ING Barings and Charterhouse Securities.
In June, Ted Baker announced plans to raise £95m by issuing new shares as it grapples with the fallout of Covid-19 coronavirus downturn.
Total retail sales fell 34pc during lockdown, but the company was bolstered by a 50pc surge in online sales. About 85pc of Ted Baker's workforce has been furloughed and its stock is down around 93pc since Mr Kelvin left.
The retailer was already struggling before the coronavirus lockdown. It has unveiled a turnaround plan under new boss Rachel Osborne that includes doubling down on online orders and opening more franchises abroad.