Ray Kelvin has resigned as chief executive of Ted Baker with immediate effect following allegations of harassment.
Mr Kelvin was forced to take a leave of absence amid claims that he enforced a "hugging" culture at the company.
Accusations were also made that he massaged employees, kissed their ears and asked some to sit on his lap.
Ted Baker said today that Mr Kelvin agreed to resign as chief executive and as a director of the retail chain.
Mr Kelvin has denied all allegations of misconduct.