CEO Of Samsonite Leaves After The Doctorate Drama
The CEO of Samsonite resigned after an accusation that he made false statements about his education.
The largest baggage maker around the world said on Friday to Hong Kong Stock Exchange that Ramesh Tainwala will quit the company after the investment firm charged him for the fake claim that he is a doctorate in business administration.
The resignation of Tainwala as executive director is brought into action immediately. Samsonite’s CFO, Kyle Gendreau, will be replacing him.
According to the company, “Tainwala cited personal reasons for back out. He said his council carefully analyzed the facts related to the statement about his education and decided that accepting his resignation meets the interests of the company and its shareholders.”
In a spell of statements on Friday, Samsonite reaffirmed his standpoint on the report, calling it unilateral and deceptive. He also gave a comprehensive response to the specific statements of Blue Orca.
It was reported, “The conclusions of company report and its financial outcomes are inaccurate. The financial disclosure of the company is an accurate reflection of solid business fundamentals.”
Post launch of the Blue Orca report in the previous week, Samsonite shares dropped by 21% in two days of training in Hong Kong. They recommenced trading on Friday, which surged by more than 10%.
However, the Blue Orc said, “He did, but never completed his Ph.D. program.”
Tainwala afterward told the Wall Street Journal that he never claimed to have a Ph.D. He said that colleagues and friends called him as a doctor in a humorous way, knowing that fact he is yet to complete his doctorate.
The suitcase manufacturer, Samsonite in the last week, made an investment that it will be investing £5.6 Million in its Hungarian suppliers. This step is an initiative to back the company’s “Made in Europe products.”