“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,” the Woolworths Holdings spokesperson said.

Vuppalapati has retained his position as chief executive, but that decision may spark a wave of resignations as staff are angry over his role in handling complaints about Maliki, the former chief supply chain officer. Vuppalapati brought Maliki into the business in August 2022. The complaints alleged Maliki sexually harassed, bullied and intimidated female and male employees.

Vuppalapati and Maliki worked together at boot maker R.M. Williams between January 2015 and July 2021, when Vuppalapati was chief executive and Maliki general manager. They also previously worked together at Levi Strauss & Co in South Africa.

“The culture at Country Road Group can’t move forward until the board recognises that Raju needs to leave,” said one head office employee who spoke on the condition of anonymity.

“There have been a couple that’ve left and there are quite a few preparing themselves to leave in the event that Raju continues as CEO.”

Andrew Forrest’s private investment vehicle, Tattarang, which owns R.M. Williams, is now conducting its own review of the pair’s time at the boot maker. “We are aware of the reports and are conducting internal inquiries,” a Tattarang spokesperson said.

“The behaviour in the reports is contrary to the company values and is not tolerated. The safety and wellbeing of our employees is our priority. We actively encourage a speak-up culture.

“Given the nature of the reports we have reminded staff of the confidential counselling and support services which are available.”

Some Country Road staff in departments where Maliki worked knew of his allegedly inappropriate behaviour, a source said, but the broader company was unaware until the all-staff meeting in March.

“Basically, when Rachid came in, there was a noticeable change in culture,” the employee said. “The biggest issue is no actions were taken [about alleged] victims’ complaints.

Loading

“We believe Raju was purposely stonewalling complaints, but there’s no proof.”

Amid staff anger about complaints not being dealt with properly, an employee survey was taken in December, where some sexual harassment and bullying allegations were detailed.

Maliki left the business in February. An all-staff meeting was called in March, during which Bagattini visited Australia to hear from employees.

At the March staff meeting, multiple employees – including some leadership executives – called for Vuppalapati to stand aside while the external investigation was conducted, but Bagattini rejected the idea, an employee said.

“It’s openly stated around the office and in discussions in the forum in March, I believe, people were calling for him to at least be suspended whilst the investigation was ongoing, which Roy denied,” the staffer said.

At Tuesday’s staff meeting, Bagattini confirmed Vuppalapati would remain as chief executive when an employee asked if he would continue in the role.

Country Road’s Melbourne flagship store in South Yarra had its windows covered by posters last week as protesters called on the company to “stop the cover-ups” of alleged sexual harassment.

Country Road, which also operates the Mimco, Trenery, Politix and Witchery brands, is trading in a challenging retail environment in which consumers are pulling back their discretionary spending amid cost-of-living pressures.

Australians can access Woolworths Holdings’ whistleblower policy online. It contains details about an independent hotline (1800 504 994) and a tip-off email address at [email protected].

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.