Ted Baker founder Ray Kelvin is taking a “temporary leave of absence” after being accused of giving unwanted hugs to staff.
In a statement, he said the “accusations of the past week have raised some very serious and upsetting issues”.
He added that it was “only right that the board should investigate fully”.
The 62-year-old continued: “Ted Baker has been my life and soul for 30 years.
“I love this company and I care deeply for all my colleagues.
“It’s for that reason that I have decided to take a temporary leave of absence.
“Ted Baker means everything to me and I can’t bear to see it harmed in any way.”