Enthusiasts
Report: Signet Jewelers’ Two Largest Retailers Accused Of Widespread Sexual Harassment, Discrimination
Jewelry News Network
Bombshell may be the proper word to describe Monday’s story in The Washington Post regarding Kay Jewelers and Jared The Galleria of Jewelry. Devastating may be the proper adjective.
Since 2008 there’s been an ongoing arbitration case between Sterling Jewelers (which is the parent division of Kay and Jared), by former female employees of the company who allege they were victims of sexual harassment and discrimination, dating back to the 1990s. It began with about a dozen former employees. It has now grown to approximately 69,000 men and women employed at the two jewelry chains, according to the Post.
Over the years I remember this case appearing in public every so often and then disappearing again. Under arbitration rules, there is little transparency. So knowing the extent of what is being alleged was difficult to determine.
Now we know and it isn’t pretty.
More than 1,300 pages of sworn statements were released Sunday due to requests from the Post and lawyers representing the employees. Names of the executives being accused were redacted under the agreement to release the documents. However, through memorandums one of the executives was identified: Mark Light, now CEO of Sterling’s parent company, Signet Jewelers. He is among those accused of “having sex with female employees and promoting women based upon how they responded to sexual demands,” the Post reports.
Most damning is this: “Multiple witnesses told attorneys that they saw Light ‘being entertained’ as he watched and joined nude and partially undressed female employees in a swimming pool,” according to the 2013 memorandum.”
About 250 women and men who worked at Sterling “allege that female employees at the company throughout the late 1990s and 2000s were routinely groped, demeaned and urged to sexually cater to their bosses to stay employed,” according to the Post. “Sterling disputes the allegations.”
The others accuse the company of discriminatory practices in regards to pay and promotion.
Many of the most striking allegations, according to the Post, stem from the company’s annual managers meetings, “which former employees described as a boozy, no-spouses-allowed ‘sex-fest’ where attendance was mandatory and women were aggressively pursued, grabbed and harassed.”
The Post backs the testimony with interviews of a few of the accusers.
Signet Jewelers, as previously mentioned, is the parent company of Sterling Jewelers, which consists of Kay, Jared (two chains in this legal battle) and regional jewelry store chains. Signet is one of the two largest jewelry retailers in the world (depending on how it’s determined). It has operations in the U.S., Canada, Puerto Rico and the U.K. In 2014, Signet acquired Zales Jewelers.
Signet’s sales were approximately $6.5 billion, according to its fiscal 2016 financial report. Kay and Jared make up about 58 percent of total sales.
This is not only a public relations nightmare but it also has potential to have a devastating effect on Signet's balance sheet. Company sales have already struggled this year.
Signet scheduled its fiscal 2017 and fourth earnings release and conference call for March 9. This should be some presentation.
In case you haven’t clicked on the link yet here it is again.
Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet, the Forbes website and on Instagram @JewelryNewsNetwork
