Country Road Group set for restructure following sexual harassment and bullying claims
The boss of Country Road Group has acknowledged the fashion retailer is experiencing its worst financial performance ever and has called for a comprehensive review of its structure, the establishment of new leadership teams, and cost-cutting measures, which is likely to result in job losses.
Earlier this year, the luxury merchant made headlines following allegations of sexual harassment and bullying.
At the time, the chief executive of its parent company Woolworths Holdings, Roy Bagattini, told Mumbrella: “It is clear that we did not meet our own expectations, let alone those of our employees.”
The scandal reportedly significantly lowered staff morale and led to several resignations, including that of Elle Roseby, the highly regarded leader of the Country Road label.
Roseby later became the CEO of home furniture retailer Adairs.
The fallout also sparked protests, including vandalism at the flagship Country Road store in Toorak, Melbourne, where union-led demonstrations took place.
Per The Australian, as sales continue to plummet, Country Road Group plans to restructure its sourcing and supply chain while pursuing better pricing arrangements with suppliers. This comes as the company seeks to reduce its cost of goods sold amid declining revenue.
The retailer also aims to bolster its sales efforts in South Africa, where it currently accounts for only about 11% of total group sales, with hopes of significantly increasing that figure.
In a meeting with employees at the company’s Melbourne headquarters on Wednesday, employees were told they needed to embrace a “mindset shift” as the company restructures.
CEO Raju Vuppalapati noted that recent employee surveys were “confronting” and indicated a sharp decline in morale, with staff expressing that the company was not “the best version of ourselves.”
Country Road Group has also formed a “respect at work” working group.
“We need to change our operating model, an end-to-end relook at our structure, how we work together… and ensure all brands grow,” Vuppalapatia said.
Vuppalapati and the management team did not specify the amount of job losses during the presentation.
The new leadership structure for Country Road Group is expected to be unveiled by October 16, with the new staff teams to follow by mid-November.
Mumbrella has contacted Country Road Group for comment.
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topics
Country Road
Country Road Austraila
Country Road Group
Elle Roseby
Raju Vuppalapati
Roy Bagattini
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