Country Road investigation ends with CEO remaining in top job despite staff anger

Country Road’s investigation into a sexual assault scandal has ended with the CEO keeping his job, despite angry staff accusing up of a major “cover up”.

An investigation into a sexual assault scandal at fashion brand Country Road Group has ended, with the CEO keeping his job despite staff accusing him of a major “cover up”.

In a statement issued on Wednesday the company’s parent group, Woolworth Holdings Limited (WHL), said it would now review its complaint handling processes.

It added that “disciplinary action” would be taken in relation to “certain individuals” involved in the complaints handling process.

But furious staff accused the company of ignoring genuine concerns about the way complaints were handled by Country Road Group boss Raju Vuppalapati, who it is understood will remain in the top job.

“Everyone is disappointed and angry,” one staffer said.

The investigation was sparked after multiple allegations by males and females were filed against former senior executive Rachid Maliki.

Staff accused the fashion brand, and Mr Vuppalapati, of a major “cover up” over Mr Maliki’s conduct, amid allegations of unsolicited touching and kissing.

Formal complaints were first lodged in October last year, but whistleblower staff accused Mr Vuppalapati of running a protection racket for his friend.

Staff members made multiple allegations against former senior executive Rachid Maliki.

Mr Maliki, who had been in the senior role since August 2022, had previously worked as a general manager at RM Williams while Mr Vuppalapati was chief executive of the shoe retailer.

Multiple sources said Mr Maliki faced similar allegations while at RM Williams.

After being appointed CEO of Country Road in 2021, Mr Vuppalapati brought Mr Maliki in to work for him in the senior leadership role.

“Pursuant to the conclusion of this rigorous and comprehensive process, CRG will be implementing a number of actions to strengthen and enhance its complaints handling process going forward,” a statement by Woolworth Holdings Limited said.

Some staff were frustrated by the way the complaints were handled by Mr Vuppalapati. Picture: John Feder

“These include, but are not limited to: an end-to-end review of the complaint handling and reporting process; the launch of a refreshed sexual harassment training program to raise awareness and understanding of the complaint management process; and the commissioning of an independent review of sexual harassment and workplace misconduct policies and processes to ensure alignment with leading practice.”

WHL chief Roy Bagattini said he was “deeply disappointed that some team members did not feel fully supported when raising complaints about inappropriate behaviour.”

“It is clear that we did not meet our own expectations, let alone those of our employees,” he said.

“We have zero tolerance for sexual harassment and inappropriate behaviour in our organisation, and are fully committed to taking any actions needed to ensure an environment where all our team members feel safe, valued and included.”

After the scandal was made public, staff were gagged from speaking out about the allegations.

In an email to staff Mr Bagattini expressed disappointment the crisis had been made public and ordered staff not to speak with media.

Relieved staff said media coverage of the issue appeared to have forced the company to fast track the release of a formal investigation into the scandal.

The news about the sexual assault scandal prompted Trades Hall unionists to plaster Country Road store windows with signs saying “stop the cover ups!”, “let women speak” and “listen to women” last week.

Country Road’s Chapel street store was plastered with posters by unionists. Picture: David Caird

Trades Hall Assistant Secretary Wil Stracke on Tuesday said the response was a “perfect example of why sexual harassment needs to be dealt with as a workplace health and safety issue”.

“Anyone can say “we have a zero tolerance approach to harassment”. Anyone can commission endless reviews,” she said.

“Unless and until they take proactive steps to protect their workers, it’s all meaningless.”