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Jide Zeitlin, the chief executive of Tapestry, the owner of Coach and Kate Spade, and one of only four Black chief executives in the Fortune 500, resigned on Tuesday. The unexpected move came after the company’s board was made aware of a misconduct allegation involving Mr. Zeitlin and hired a law firm to investigate, according to a person familiar with the situation who spoke on the condition of anonymity.
Though Tapestry announced that Mr. Zeitlin was stepping down for “personal reasons,” Mr. Zeitlin later acknowledged in a statement that the exit was related to a past relationship.
“In the past month, a woman I photographed and had a relationship with more than 10 years ago reached out to various media organizations to express her concerns about what had occurred,” Mr. Zeitlin said in the statement. “I felt compelled to resign today because I do not want to create a distraction for Tapestry, a company I care deeply about.” The Wall Street Journal reported on the statement earlier Tuesday.
The company hired Fried, Frank, Harris, Shriver Jacobson after the allegation recently came to light, the person familiar with the matter said.
In March, Tapestry had said that Mr. Zeitlin would remain at the helm for at least three more years.
Tapestry, which is based in New York, said that Joanne Crevoiserat, its chief financial officer, would serve as interim chief executive and that it had started a search for a permanent replacement.
The unexpected departure comes as the retail industry grapples with the fallout from the coronavirus pandemic. Tapestry, like other retailers, has been forced to close stores and adjust operations in China and in the United States as the virus continues to spread.
The company, which also owns Stuart Weitzman, is a giant with about $6 billion in annual sales, but had seen its shares drop by roughly 50 percent this year. It next reports earnings on Aug. 13.
Article source: https://www.nytimes.com/live/2020/07/21/business/stock-market-today-coronavirus