Founder of Ted Baker fashion house, Ray Kelvin, on Monday resigned from his post as chief executive following harassment accusations.
Stepping away was the "right thing to do", Kelvin said.
"The past few months have been deeply distressing and I'll now be taking time privately with my family to consider what my next adventure will be. Bye for now," he added.
Executive chairman David Bernstein said that Kelvin stepped down "in the best interest of the company.
Two employees, who did not wish to be identified, spoke to BBC radio.
"There was nothing inherently wrong with the actual hugs, but the uncomfortableness came from what tended to accompany them: unwanted personal comments, kisses on the cheek, neck stroking," said a male staff member.