Tapestry, whose products include Coach and Kate Spade handbags, announced its Chairman and CEO Jide Zeitlin has resigned.
According to CNBC, Zeitlin’s resignation is effective immediately and Zeitlin’s departure is the latest in a bevy of senior-level departures as the coronavirus pandemic wreaks havoc on the economy and Americans have limited their spending.
Tapestry said Zeitlin resigned for personal reasons. However, CNBC said Tapestry has opened a probe into his personal behavior after a woman accused Zeitlin of posing as a photographer, to lure her into a romantic relationship more than a decade ago.
The board has hired the law firm Fried, Frank, Harris, Shriver & Jacobson to investigate the allegations raised by at least one female, an unnamed source has told CNBC.
Zeitlin’s resignation ends a 14-year relationship with the company. Zeitlin joined Tapestry in 2006 as a board member. Zeitlin took the CEO role in September and had been celebrated as one of the few Black CEOs of the nation’s largest publicly traded companies
“Mr. Zeitlin’s departure was not due to any disagreement with the company on any matter relating to the Company’s operations, financial statements or accounting,” Tapestry said in 8-K filing with the Securities and Exchange Commission.
In March, the company announced Zeitlin planned to stay with the Tapestry over the next three years to work on restoring growth.
The company said Chief Financial Officer Joanne Crevoiserat, a former Abercrombie & Fitch executive, will serve as the interim CEO of Tapestry. It also said it’s looking for a permanent leader and will consider both internal and external candidates.
The company’s Head of Investor Relations and Communications, Andrea Resnick, has been named interim CFO.
Tapestry shares are down about 51% this year, but the company said its fiscal fourth-quarter results have exceeded internal expectations. According to the company, inventory levels have been falling from a year earlier and the retailer is using fewer promotions, helping gross margins.
Before Zeitlin started at Tapestry, he worked for the Keffi Group, the Nigeria Sovereign Investment Authority, and Goldman Sachs.