Restoration Hardware Co-Chief Steps Down

Gary Friedman has resigned his position as chairman and co-CEO of soon-to-be-public Restoration Hardware amid a personal conduct inquiry.

Sources close to the matter told The New York Times’ Dealbook that an internal inquiry regarding an alleged intimate relationship between Friedman and a 26-year-old female employee has been underway. According to the same sources, the woman has since left the company. She has also reportedly told those investigating the matter that the ongoing relationship was consensual.

Considering that the company’s stock offering isn’t far away, the timing of the scandal isn’t good. Not that there’s ever a good time for a scandal … just ask Best Buy (NYSE:BBY), Barclays (NYSE:BCS) or HSBC (NYSE:HBC).

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