New York -- According to multiple reports citing anonymous sources, Restoration Hardware chairman and co-CEO Gary Friedman has stepped down after an internal investigation into a relationship he had with a 26-year-old female employee.
Friedman was confronted with findings that he had had an intimate relationship with the employee, who has since left the company. To look into the matter, the board of directors formed a special investigative committee and brought in an outside law firm to conduct the inquiry.
Friedman, 54, was in the throes of leading the company through the preparation process for its initial public offering. He was previously president and COO of Williams-Sonoma. He is said to still be involved with the employee.
Restoration Hardware has publicly announced the management change, naming co-CEO Carlos Alberini as sole CEO, but has so far not given the reason for the reorganization.