Country Road boss to keep job but changes afoot after investigation

The boss of Country Road Group will keep his job in the wake of an investigation into the retailer’s workplace that saw two executives leave.

Country Road Group has issued its report into the handling of improper workplace behaviour. Picture: Gaye Gerard/NCA NewsWire

Country Road Group chief executive Raju Vuppalapati will keep his job in the wake of the handling of sexual harassment and workplace bullying allegations that engulfed the fashion house and which saw two former high-ranking male executives leave the business.

However, there will be disciplinary action taken against unnamed individuals following the investigation and the poor handling of the original workplace complaints.

“The company confirms that it is taking disciplinary action in relation to certain individuals involved in the complaints handling process. In line with standard practice, the company will not be providing details on individual disciplinary matters,” a spokesman for the South African parent of Country Road Group said late Tuesday.

The spokesman declined to say who at Country Road Group was facing disciplinary action.

The long awaited review and investigation into Country Road Group’s handling of allegations from mostly female staff complaints of sexual harassment and bullying was issued on Tuesday, and has seen the retailer’s parent, South Africa’s Woolworths Holdings, bring in sweeping changes to its complaints processes, handling of workplace incidents and fresh sexual harassment training.

Woolworths Holdings CEO Roy Bagattini is currently in Australia to explain and detail the results of the external investigation to Country Road Group staff at its headquarters in Melbourne.

Country Road Group will be implementing a number of actions to strengthen and enhance its complaints handling process going forward, the company said, following an external investigation handled by local specialist law firm Seyfarth Shaw and South Africa’s largest law firm ENS.

However, it seems, for now, that Mr Vuppalapati will keep his job. There were no allegations made against Mr Vuppalapati.

The executives who suddenly departed Country Road Group worked with Mr Vuppalapati when he ran country outfitter RM Williams.

Country Road store on Hastings Street during lockdown. Picture: Lachie Millard

Last week, The Australian revealed that Country Road Group, whose fashion and apparel brands include Country Road, Trenery, Mimco, Witchery and Politix, had been engulfed in a sexual harassment and workplace scandal. It saw two highly placed executives suddenly depart and the global boss Mr Bagattini flying to Australia to address staff to announce an external investigation into the handling of complaints at the retailer’s Melbourne headquarters.

One of those 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 members.

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.

Mr Mustafic and Mr Maliki both worked as executives at RM Williams. Both were brought across to Country Road Group by CEO Mr Vuppalapati, the former boss of RM Williams, who joined Country Road as its boss in mid 2021.

There have been no official findings against Mr Maliki or Mr Mustafic. Both were contacted for comment by The Australian. It is not known whether Mr Maliki or Mr Mustafic were given the opportunity to defend themselves in response to the allegations in the review commissioned by Country Road Group.

On Tuesday, a Woolworths Holdings spokesman said Country Road Group and its parent company, Woolworths Holdings, have a zero-tolerance policy for sexual harassment and inappropriate behaviour.

“In line with this, we commissioned an external investigation, for the purpose of legal advice, into the handling of Country Road Group team member complaints in relation to alleged sexual harassment.”

The spokesman said pursuant to the conclusion of a rigorous and comprehensive process, Country Road Group will be implementing a number of actions to strengthen and enhance its complaints handling process going forward.

“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.”

Mr Bagattini said he is 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. 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.”

Last week as the scandal around Country Road Group grew, Mr Bagattii sent a staff email demanding that they not talk to the media about the allegations swirling around the retailer, which some saw as an attempt to cover up the scandal. It led to a protest at the flagship Country Road store in South Yarra, Melbourne.