Country Road boss Elle Roseby departs scandal-ridden fashion house

The managing director of scandal-ridden fashion house Country Road, Elle Roseby, has resigned from the troubled upmarket retailer after serving six years at the helm.

After six years at the helm of Country Road, managing director Elle Roseby has left the retailer. Picture: Stefan Postles

The boss of scandal-ridden fashion house Country Road, Elle Roseby, has resigned from the troubled upmarket retailer after serving six years at the helm and following the crisis surrounding the chain that saw allegations of sexual harassment, bullying and improper rebates demanded from suppliers grip the company.

The scandal at Country Road Group, owned by South Africa’s Woolworths Holdings, erupted in May when staff complained about senior executives engaged in improper workplace behaviour – ranging from bullying to sexual harassment – and which ultimately resulted in an investigation led by outside lawyers and the eventual departure of two executives.

There were never any allegations made against Ms Roseby, and in fact she was a highly respected leader, who was seen by many staff members as being put under enormous pressure from the scandals swirling around the company.

Many staff at the Country Road Group headquarters in Burnley, Melbourne, had looked to Ms Roseby for leadership amid the growing scandal and to represent their concerns to management in South Africa after a complete collapse in local staff morale.

A spokesman for Country Road confirmed on Friday that Ms Roseby had left the company.

It is believed that Ms Roseby had been on sick leave and personal leave for some time, possibly as long as two months, and when Woolworths Holdings boss Roy Bagattini came to Australia to address staff at the Country Road headquarters in Melbourne about the many scandals pouring from the retailer she was noticeably absent from the town hall meeting.

Her departure will leave a huge hole in the leadership of Country Road, with Ms Roseby highly respected within the Australian fashion industry.

Country Road Group owns the Country Road label as well as Trenery, Mimco, Witchery, Mimco and Politix.

The Australian revealed in May that Country Road Group was mired in a sexual harassment and workplace bullying scandal involving former executives, with the company also launching an externally led investigation into the handling of the matters.

Country Road’s Chapel street store in Melbourne was hit with protest posters in May. Picture: David Caird

The sexual harassment and workplace scandal saw two highly placed executives suddenly depart and the global boss fly to Australia to address staff to announce an external investigation into the handling of complaints at the retailer’s Melbourne headquarters.

One of those ejected executives was Rachid Maliki, who was brought in from outback outfitter RM Williams as Country Road Group’s chief supply chain officer. Following allegations of sexual harassment and bullying it is believed that 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.

There were also allegations of workplace bullying against a second RM Williams executive brought into Country Road Group, Mehmed Mustafic, around his alleged treatment of some staff at the fashion house’s Burnley head office. These allegations did not include sexual harassment or sexually inappropriate conduct. Mr Mustafic exited the business on March 21 after serving for only 10 months in the role as general manager of sourcing and product development.

There have been no official findings against Mr Maliki or Mr Mustafic.

Later Country Road Group chief executive Rajiv Vuppalapati – who formerly worked at RM Williams and brought over the two executives – was forced to front angry staff at the tow hall meeting and apologise for the improper workplace behaviour caused by some staff.

Staff were angry at the hirings of the two former RM Williams executives by Mr Vuppalapati and alleged their complaints to management about improper workplace behaviour was ignored.

Later The Australian also revealed that the global boss of the owner of embattled fashion house, Mr Bagattini, was forced to defend the hiring of the Australian CEO Mr Vuppalapati’s daughter at its Witchery brand as well as a family friend, as staff at the retailer continue Le to revolt against the company.

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 the group’s financial performance. It is believed that Country Road Group has specialist lawyers to investigate if its executives used pressure tactics on suppliers.