Away CEO Who Stepped Down Amid Claims of Creating a Toxic Work Environment Returns to Co-Lead Company

One month after stepping down as CEO of luggage company Away, Stephanie Korey is back to leading the brand she co-founded.

Following a story published by The Verge in December, Korey, 31, announced she was leaving the position after former Away employees claimed she had fostered a toxic work culture. In the report, they claimed Korey had created a clique-like office environment, forced people to work “exceedingly” long hours, and were severely and publicly scrutinized for making mistakes.

One day after the story was published, Korey released a statement on Twitter, saying she was “appalled” by her own behavior.

“What you read in the article doesn’t reflect the company we want to be; and we will continue to work to improve,” read part of the statement. “… I want all of our employees to hold me, and the entire leadership, accountable to that.”

Following her statement, Away announced that Korey would be replaced by former Lululemon executive Stuart Haselden, and Korey would serve as executive chairman. On Monday, however, The New York Times reported that Korey will remain at Away as co-CEO along with Haselden.

RELATED: CEO of Luggage Company Away Steps Down After Being Accused of Fostering Toxic Work Environment

 

Haselden said Korey’s choice to step down was “selfless” for the company to manage negative attention, but that the move “created a misconception that she was exiting the business, which was never the intent.”

In a statement to PEOPLE, Haselden said he is “very excited” for Away’s future.

“As I got to know the company over the past several months, the two things that stood out to me most were the genuine love that customers feel for the brand and the passion and pride that employees feel for the company,” said Haselden. “There is so much opportunity ahead for Away, and I am very excited to bring that to life alongside Steph, Jen, and the rest of the team.”

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According to a companywide memo she sent on Monday, Korey said it was never the plan to remove herself from the company altogether.

“Unfortunately, [initial leadership adjustments were] misinterpreted in the media as me leaving Away, and has caused more confusion than clarity (both internally and externally).” She added: “So, let me clear that up: I am not leaving the company.”

Korey cofounded Away with Jennifer Rubio in 2015. The successful start-up company, which sells hard-shell luggage, reached a valuation of $1.4 billion in May, according to Forbes.

“I honestly thought that people didn’t care that much about the inner workings of Away,” Korey told the Times. “Who is CEO and who is executive chairman — that wasn’t something that, at a private company that’s less than four years old that sells travel products, I just didn’t think would be news and people would care.”

Away luggage | Courtesy of Away
Away luggage | Courtesy of Away

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In The Verge article, Away employees described an ever-present fear of saying “no” and being constantly overwhelmed. One screengrab taken of an in-office messaging system shared in The Verge’s report shows Korey calling an employee “brain dead” for not correctly monogramming a customer’s luggage. In addition to Korey’s intimidating online presence, employees claimed she was also frightening in person.

“When I think back on ways I’ve phrased feedback,” Korey told the Times, “there have been times where the word choice isn’t as thoughtful as it should have been, or the way it was framed actually wasn’t as constructive as it could have been.”

She added: “Those are not, in the eyes of our leadership and the eyes of our board, terminal, unsolvable problems.”