Tapestry Needs to Be Sold for $5 Billion, Jim Cramer Says

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Tapestry CEO Jide Zeitlin resigned Tuesday. 

But media reports say that Zeitlin was under investigation by the board for his personal behavior before he resigned, a media report says.

The Wall Street Journal reported that Tapestry, parent of Coach, Kate Spade and Stuart Weitzman, had hired a law firm to investigate allegations raised by at least one woman.

The woman accused Zeitlin of posing as a photographer under an alias to lure her into a romantic relationship more than a decade ago, the Journal reported, citing people familiar with the situation.

"In the past month, a woman I photographed and had a relationship with more than ten years ago reached out to various media organizations to express her concerns about what had occurred,” Zeitlin said in a statement to the Journal.

“I felt compelled to resign today because I do not want to create a distraction for Tapestry, a company I care deeply about."

Zeitlin had been CEO since September. He'd served as chairman since November 2014.

The company had stated earlier that Zeitlin, a former Goldman Sachs investment banker, stepped down for "personal reasons" and Chief Financial Officer Joanne Crevoiserat had been named interim CEO.

Tapestry was contacted by TheStreet but did not immediately respond to a request for comment. 

 Jim Cramer says that he's not sure a new CEO will be enough to change the company around. 

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

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