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Friday
Aug172012

Restoration Hardware Chief Quits Amid Relationship Probe

iStockphoto/Thinkstock(NEW YORK) -- Restoration Hardware chairman and co-chief executive officer Gary Friedman has reportedly resigned over an inappropriate relationship with a 26-year-old female employee, whose ex-boyfriend first alerted the furnishings retailer of the allegation.

The New York Times reports that an ex-boyfriend of the female employee told the company about the employee’s relationship with Friedman, divorced for seven years. An investigation ensued, though there were questions about the allegations because the boyfriend had a criminal record.

The company’s board of directors had formed a “special committee” and hired the law firm Weil, Gotshal & Manges for an inquiry about the alleged relationship, the newspaper reported.

Restoration Hardware and Weil, Gotshal & Manges did not immediately return a request for comment.

Friedman, 54, is reportedly still in a relationship with the employee, who has also left the company, according to people who spoke on the condition of anonymity, the Times reported.

News of Friedman’s resignation comes amid major changes in the company.

Earlier this week the company reported it was creating a new company to develop apparel and accessories, Hierarchy, with Friedman as founder, chairman and CEO. Restoration Hardware’s co-CEO Carlos Alberini would become the company’s sole CEO and J. Michael Chu, a managing partner at private equity firm Catterton Partners Corp., would become its new chairman, the Wall Street Journal reported.

Friedman has been chairman and co-CEO since June 2010 and was CEO since March 2001. Previously, he worked for Williams-Sonoma and Gap Inc.

Copyright 2012 ABC News Radio







ABC News Radio