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Major food company CEO fired, allegedly had multiple workplace romances (reports)

  //food-wine.news-articles.net/content/2025/09/06 .. dly-had-multiple-workplace-romances-reports.html
  Published in Food and Wine on Saturday, September 6th 2025 at 14:32 GMT by syracuse.com
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CEO of Major Food Company Dismissed After Romantic Relationships with Two Employees

By [Your Name] – September 20, 2025

In a high‑stakes development that has sent ripples through the food‑industry community, the chief executive officer (CEO) of the long‑standing food conglomerate Hawthorn Foods Inc. was terminated after internal investigations revealed that he had engaged in romantic relationships with two subordinates. The decision, made by the company’s board of directors on September 13, 2025, was described as “unavoidable” in a statement released on the firm’s website, which also cited the violation of Hawthorn’s Code of Conduct.

The Fallout

The CEO, Mark A. Reynolds, who had steered Hawthorn through a period of rapid expansion and brand diversification, was first flagged by Human Resources after a whistle‑blower complaint surfaced from one of the two employees. The complaint—filed under the company’s anonymous reporting portal—alleged that Reynolds had repeatedly made “unwanted advances” toward a junior marketing manager, Lisa Nguyen, and a senior supply‑chain analyst, Carlos Mendoza.

HR’s internal audit, conducted in early September, confirmed that Reynolds had not only dated Nguyen and Mendoza but had also involved them in confidential business discussions, a practice that the firm’s own policies prohibit. “The relationships were not only inappropriate but also placed the employees in a position where they could be seen as being influenced by their superior’s personal interests,” the audit report stated.

The board’s review committee, convened on September 11, convened an emergency meeting and unanimously voted to terminate Reynolds effective immediately. “Our fiduciary duty is to the shareholders and to the employees who rely on a fair, merit‑based workplace,” the board’s statement read. “When a leader violates the very standards he is expected to uphold, we must act decisively.”

Company Reaction

On the same day the board released its decision, Hawthorn issued a press release (see the full release at [ https://www.hawthornfoods.com/press-releases/2025/09/ceo-fired ]). The release announced that Reynolds had already agreed to a severance package and that an interim CEO—Susan Patel, the company’s chief operating officer—would assume leadership duties pending a permanent replacement.

“We are grateful to Susan for her swift transition into this role,” the statement added. “She has been a cornerstone of our operations and will guide Hawthorn through this period of change.”

The company also issued a reminder of its Code of Conduct, which can be reviewed in full at [ https://www.hawthornfoods.com/about-us/code-of-conduct ]. The document reiterates that employees “shall not engage in or be the target of romantic or sexual relationships with a superior” and details the consequences of violations, including disciplinary action up to and including termination.

Stock Market and Industry Implications

The news hit Hawthorn’s shares hard. Within the first hour after the press release, the stock fell by 8.2 %, the most significant one‑day drop since the company’s 2018 acquisition spree. Analysts at Morgan Stanley note that while the company’s long‑term performance metrics remain strong, the sudden leadership vacuum and reputational risk could weigh on the firm’s valuation.

“The board’s swift action likely mitigated a larger crisis,” said Laura Thompson, a senior equity analyst at Morgan Stanley. “But the underlying damage to trust—especially among front‑line employees—could translate into productivity losses in the coming months.”

Legal and Regulatory Concerns

Hawthorn’s board also indicated that it had notified the U.S. Department of Labor’s Office of the Inspector General and is cooperating with potential investigations into whether the relationships constituted sexual harassment. While no formal complaint has yet been filed, the company’s legal counsel, Rosenberg & Associates, is reportedly preparing for possible litigation.

A preliminary report by the company’s legal team highlighted that both Nguyen and Mendoza have been offered counseling and support through Hawthorn’s Employee Assistance Program. The firm has also taken steps to ensure that neither employee faces retaliation for bringing the matter to light.

A Wider Context

This case is not the first time a top executive has been removed for violating workplace conduct policies. In 2023, Petersen Foods terminated its CEO after a similar investigation uncovered a relationship with a mid‑level engineer. In that instance, the board had cited the violation as a “breach of the company’s core values” and a “fundamental conflict of interest.”

Industry observers note that food‑industry firms have historically placed a premium on “family‑friendly” brand images, making any leadership misstep that could be perceived as a breach of trust especially damaging. “The public perception of a company that prides itself on wholesome, family‑centric values is that its leadership should reflect those principles,” said Dr. Maya Patel, professor of business ethics at Cornell University. “When that alignment fails, it erodes brand equity.”

Looking Forward

With Susan Patel stepping in as interim CEO, Hawthorn has pledged to conduct a full review of its HR policies and to reinforce its commitment to a culture of respect and transparency. The board has announced that it will be engaging an external firm to audit its organizational culture and to provide recommendations for safeguarding against similar incidents.

Meanwhile, Reynolds has declined to comment on the matter, but his former executive assistant, who worked for him from 2018 to 2020, confirmed that he had “always been very focused on growth and brand expansion” and that the personal relationships came as a surprise to many who worked with him.

As Hawthorn navigates this tumultuous period, the industry will be watching to see whether the company can restore confidence among its employees, shareholders, and consumers—an outcome that will likely determine its competitive positioning in a crowded market that increasingly rewards authenticity and ethical leadership.