CBI is considering bankruptcy over devastating sexual harassment allegations that caused major companies to quit the group
- CBI has sought legal advice on bankruptcy following sexual harassment lawsuits
- The allegations led to a mass exodus of large companies such as Aviva, John Lewis and BT
The Confederation of British Industry (CBI) lobby group affected by the “scandal” has sought legal advice on a possible bankruptcy as it is in an existential crisis after allegations of sexual harassment.
Lawyers from an unnamed law firm in the city have been hired to advise the group ahead of a vote on its future this month.
The group, which previously claimed to represent 190,000 companies, was caught in a scandal after allegations of rape and inappropriate touching.
Bosses are expected to release a prospectus outlining proposed governance changes before a company meeting on June 6.
New CEO Rain Newton-Smith has pledged to transform the group so it can continue to be a voice for business.
The group, which previously claimed to represent 190,000 companies, was caught in a scandal after allegations of rape and inappropriate touching
READ MORE: CBI rocked by new sexual misconduct allegations: A woman who says she was raped at a staff boat party on the Thames is among more than a dozen “victims” who have come forward
According to The Guardian newspaper, former top executives at the company have been charged with sexual misconduct and inappropriate behavior towards employees.
Former CEO Tony Danker was fired last month for allegedly making unwanted contact with a staff member. He claimed he had been made a “sinbearer” because of the larger crisis.
A CBI spokesman said last night: “After a series of membership resignations, we know that the CBI needs to be downsized and refocused going forward.”
“The board has sought advice where appropriate on restructuring matters, as any responsible board would.”
If members vote against the proposals, the group may need to initiate a dissolution process.
Established in 1965, the CBI faces a struggle to retain its members after dozens of big firms, including Aviva, John Lewis and BT, left or suspended their membership following a second rape allegation by a female employee last month.
The Labor Party also confirmed that they had cut ties.
Former member Andy Wood, boss of Suffolk-based Adnams brewery, previously told BBC’s Today: “I think the CBI brand is probably beyond repair now.” must.”