Hong Kong (CNN Business) Ted Baker's founder and CEO has resigned as the fashion brand investigates allegations he behaved inappropriately toward staff.

has left with immediate effect. He had been on a voluntary leave of absence since December following allegations of harassment, including "forced hugging" of staff members. The British company said in a statement Monday that Ray Kelvinhas left with immediate effect. He had been on a voluntary leave of absence since December following allegations of harassment, including "forced hugging" of staff members.

Complaints over Kelvin's behavior first emerged late last year. Thousands of people, including members of staff and customers, signed an online petition demanding an end to the hugging practice and a better system for reporting harassment allegations at the firm. The petition included accusations of "inappropriate touching" by Kelvin and "a culture that leaves harassment unchallenged."

Kelvin denies all claims that he acted inappropriately toward employees. A third-party investigation into the allegations against him and into Ted Baker's policy on handling sexual harassment complaints is due to wrap up before the end of June.

"In light of the allegations made against him, Ray has decided that it is in the best interests of the company for him to resign so that the business can move forward under new leadership," Executive Chairman David Bernstein said in the statement.

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