Country Road Group says CEO’s daughter was hired through standard process
Angry staff at the scandal-plagued Country Road Group have raised concerns about the Australian CEO’s daughter and a family friend being hired for roles at the retailer.
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The global boss of the owner of embattled fashion chain Country Road Group, which has been plunged in scandal this month, has been forced to defend the hiring of the Australian CEO’s daughter at its Witchery brand as well as a family friend, as staff at the retailer continue to revolt against the company.
Woolworths Holdings CEO Roy Bagattini flew to Australia earlier this month from his office in Johannesburg where he held a staff town hall meeting with Country Road Group boss Raju Vuppalapati, where allegations of sexual harassment, bullying and a lack of action on these complaints of improper behaviour at its Melbourne headquarters were aired.
However, also of concern to staff, The Australian can reveal, was the process by which Mr Vuppalapati allowed his daughter to be hired as an e-commerce officer at its upmarket women’s fashion chain Witchery.
It was well known at the retailer’s headquarters in Burnley, Melbourne, that Mr Vuppalapti’s daughter was working for Witchery and there was also office gossip that a nephew of the Country Road Group boss was also employed.
Staff pushed Mr Bagattini for more details of how it came to be that people known or related to Mr Vuppalapati had been hired.
In response Mr Bagattini confirmed it wasn’t a nephew of the Country Road Group boss that was working for the retailer but rather a family friend.
“There is a perspective, or a view, of Raj’s daughter working here and how did that happened,” Mr Bagattini told staff at the town hall meeting a fortnight ago as he addressed the sexual harassment and bullying crisis at the retailer and the claims of staff that their complaints were ignored or covered up.
Ostensibly there to explain an externally led investigation into the alleged mishandling of sexual harassment and bullying complaints, and new systems to make sure this never happens again, Mr Bagattini was forced to defend Mr Vuppalapati’s hiring of family as well as certain executives that were later exited the business.
“Again there was a process that she (Mr Vuppalapati’s daughter) went through to get where she is in the organisation today, it wasn’t because Raj pushed her into the organisation,” Mr Bagattini told staff, many of which at the meeting openly jeered and heckled the Woolworths Holdings boss as the frustration and stress of months of poor workplace behaviour - and inactivity by the company to address it - broke out.
“And she is held to the same standard and accountability as anybody else in this room, that’s very important,” Mr Bagattini said.
He also addressed the staff rumour that Mr Vuppalapati had hired a nephew as well.
“Another view is that Raj’s nephew works in the organisation. Raj doesn’t have a nephew, so there isn’t a nephew in our organisation that belongs to Raj.”
However, it is believed by staff, some of whom have spoken to The Australian, that a family friend of Mr Vuppalapati had worked at the company for a period of time.
The anger of Country Road Group staff was particularly heightened and acute towards Mr Vuppalapati and his hiring policy since joining Country Road Group in 2021 as it was two executives that he brought with him from his former company, country outfitter RM Williams, that were at the centre of a string of workplace issues that have now covered the company in scandal.
At the 75-minute town hall meeting this month Mr Bagattini also attracted heavy criticism and complaints from staff over how Mr Vuppalapati had hand-picked former executive Rachid Maliki to join the company as its supply chain chief, with the two working together at country apparel outfitter RM Williams, and Mr Maliki later suddenly departing Country Road Group in February in the wake of sexual harassment allegations.
Staff at the meeting pushed Mr Bagattini to explain why their allegations about Mr Maliki weren’t listened to, especially by Mr Vuppalapati.
Following allegations of sexual harassment and bullying, it is believed Mr Maliki was given two weeks leave as an investigation was mounted. He later exited the business suddenly on February 19, after only 19 months in the role.
A second executive and colleague of Mr Vuppalapati, Mehmed Mustafic, was also brought across from RM Williams but suddenly exited the business on March 21 after serving for only 10 months in the role as general manager of sourcing and product development.
He faced allegations around the treatment of some staff at the Burnley head office. These allegations did not include sexual harassment or sexually inappropriate conduct.
It is unknown if either Mr Maliki or Mr Mustafic were asked to be involved in the external investigation. Neither former Country Road Group executives responded to requests for interview.
A spokesman for Woolworths Holdings said: “Country Road Group follows standard recruitment procedures for all team members, and appointment decisions are made based on merit. This includes all applicants that are referred to the business by current employees.”
It comes as Country Road Group, whose brands include Country Road, Witchery, Mimco, Trenery and Politix, now also faces fresh allegations of company executives demanding high-priced rebates from suppliers to help buttress Country Road Group’s financial performance.
It is believed that Country Road Group has specialist lawyers to investigate if its executives used pressure tactics on suppliers to hand back rebates to the retailer or risk being delisted as a supplier to the fashion house.
Some of these rebates were worth millions of dollars and could now be submerged in the retailer’s profit and loss accounts, pumping up its profitability at the expense of suppliers.
A spokesman for Woolworths Holdings declined to comment on the rebate issue or if lawyers were investigating the matter, but said the company expected all of its team members and representatives to conduct business legally, ethically and to uphold the highest standards of integrity in all their dealings.
“This includes always acting in the best interests of the group, building partnerships based on mutual respect and business success, and not taking advantage of our business relationships for personal gain. Woolworths Holdings encourages employees, business partners and other third parties to report any allegations of breaches of our ethical standards to our ethics hotline, following which they will be immediately investigated.”
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