Country road group CEO resigns

Country Road CEO Raju Vuppalapati has resigned a year after the sexual harassment scandal, with relieved staff expressing that it’s “about f – king time.”

Embattled Country Road Group chief executive Raju Vuppalapati has quit the major retailer, one year on from a sexual harassment scandal which rocked household name.

The Country Road Group, which owns brands like Mimco and Witchery, is on the hunt for a new boss after Mr Vuppalapati announced he would exit the brand in August to pursue “personal interests”.

His resignation, however, comes after the retailer’s operating profit tumbled by more than 70 per cent to $14.2 million.

And comes just one year on from an internal investigation into a series of sexual harassment complaints against former senior executive, Rachid Maliki.

Two legal firms were brought in last May to probe the handling of the complaints, by both male and female staff, after employees accused Mr Vuppalapati of a “cover-up”.

Formal complaints were first lodged in October 2023 over accusations of unsolicited touching and kissing, with Mr Vuppalapati then accused of trying to protect Mr Maliki, his friend and former colleague at RM Williams.

Staff were left fuming last year when Mr Vuppalapati was allowed to keep his job following the probe, which resulted in a promise by the company to review its complaint handling processes and take “disciplinary action” against “certain individuals”.

Country Road Group chief executive Raju Vuppalapati. Picture: Supplied.

Employees at the major fashion brand expressed their relief at Mr Vuppalapati’s exit from the business on Wednesday, telling the Herald Sun it was “about f – king time”.

“This should have happened a year ago,” they said.

“It’s disappointing that there has been no accountability”.

Despite the scandal which saw respected executive Elle Roseby – who many staff looked to for leadership in the wake of the investigation – leave the company, Woolworths Holdings chief executive Roy Bagattini congratulated Mr Vuppalapati on leaving the business in a “foundationally much stronger position”.

“Raju and I have had ongoing discussions regarding his intent to leave CRG to pursue his personal interests,” he wrote.

“After thoughtful consideration, Raju has decided that now is the right time for him to do that.”

Mr Vuppalapati will leave the company at the end of August or “until such time as the new CEO is appointed”.

The praise for the outgoing chief executive comes despite the fashion retailer’s operating profit diving by almost 72 per cent to $14.2 million in the last half of 2024 following weak sales and high operating costs.

It was a second major blow for the company which saw its profits take a 66 per cent plunge to $51.3 million for the financial year to June 2024.

Mr Vuppalapati said leading the Country Road Group had been an “honour and a privilege”.

“Whilst these decisions are never easy, I take great comfort in knowing that I leave CRG well positioned to enter this next chapter with compelling strategies, a clear pathway to improving profitability, and talented teams committed to executing our plans,” he said.

Originally published as Country road group CEO resigns