The fashion chain, Ted Baker's managing director, Ray Kelvin, must make a voluntary absence of absence amid allegations of harassment.
Last week, an employee-launched online petition accused 62-year-old Kelvin of inappropriate comments and behavior, including "forcibly embraced".
Ted Baker said the committee and the board were informed of "further serious allegations" against Kelvin.
Kelvin said the statements raised "serious and unsettling problems".
The company has appointed a law firm to conduct an independent external investigation.
The operating director Lindsay Page has been appointed managing director.
The company said it would not make any further comments on the nature of the allegations while they were still under investigation.
"I'm deeply interested"
The petition, on the Organize website, said that more than 200 Ted Baker employees finally broke their silence on at least "50 episodes of harassment" registered in the fashion group.
The staff claimed that in addition to engaging them in unpleasant hugs, the brand founder had asked the young women of the staff to sit on his knees, cuddle or let him rub their ears.
Mr Kelvin said that the allegations raised some "very serious and disruptive issues", and that it was "fair" that the Ted Baker committee and committee should investigate.
"Ted Baker has been my life and my soul for 30 years," he said.
"I love this company and I care deeply for all my colleagues, that's why I decided to take a temporary leave.
"Ted Baker means everything to me and I can not bear to see it damaged in any way."