a Bowlero The executive publicly addressed the sprawling federal discrimination investigation the company faces for the first time on Wednesday after it reported another quarter of what it called record-breaking growth.
Brett Parker, the company’s outgoing chief financial officer and longtime No. 2 to CEO Thomas Shannon, was asked about the research during an earnings call. The question came about a week after CNBC revealed that authorities are seeking to settle the investigation for $60 million.
“There’s been quite a bit of noise related to the EEOC review that’s pending here. It seemed to get quite a bit of media attention over the past week. I want to see if there’s anything you’d like to say to that,” Jeremy Scott Hamblin, an analyst at Craig-Hallum Capital Group, asked Parker.
Parker responded by saying the claims made in CNBC’s reporting are “completely false” and “we deny them in the strongest terms.”
“We have nothing to hide. We have fully cooperated throughout this process and provided information to document – and documents to the EEOC,” Parker said.
“Our own thorough investigation into the claims also found no evidence of wrongdoing or any violation of our policies prohibiting any form of employment discrimination,” he said.
Parker went on to say that the company “will not tolerate any discriminatory or degrading context.” He insisted that “these are the facts,” which is why the company fought so hard to get the claims dismissed.
“Whatever the outcome, it will not materially impact our business or distract us from executing on our strategic priorities. Our latest earnings results we are now talking about reflect our relentless focus and commitment to excellence,” said he.
“At the end of the day, we stand by our positive work culture, we stand by our visionary leader, and we stand by our track record of cultivating exceptional talent. And beyond that, there’s not much we can say.”
Last week, Bowlero shares fell as much as 9% in intraday trading after CNBC released an investigation revealing new details about an extensive investigation the U.S. Equal Employment Opportunity Commission has conducted into the company’s employment practices. The stock closed about 4% lower that day.
Parker’s comments are the first time a Bowlero executive has publicly addressed the EEOC’s investigation, which has been ongoing since 2016.
When CNBC contacted Bowlero prior to publishing a report on the investigation, the company declined to make its executives available for an interview. It only communicated through its lawyers and an outside press representative. At times, discussions of reporting the confidential settlement negotiations turned hostile when the outside press representative hinted that a CNBC reporter could be arrested for publishing the information, underscoring the seriousness of the allegations.
The case involves at least 73 former employees who claim to have been fired based on their ageor in retaliation, according to the securities filings.
The EEOC found reasonable cause in 55 of those cases, leading to a larger pattern or practice probe — a type of investigation the agency initiates in cases where systemic discrimination issues could arise.
The agency has found reasonable cause that Bowlero has engaged in a pattern or practice of discrimination since 2013, coinciding with its expansion from a small chain into a national powerhouse with 329 locations.
Bowlero’s CEO is accused of directing staff to fire older workers and replace them with candidates perceived as young and hip, former employees told the EEOC.
Among staff, the chief executive was also known for making derogatory jokes about women, casual remarks that were “racially motivated” and negative comments about LGBTQ people, the affidavit said. Some female employees did not openly disclose their marital status or their pregnancies for fear of losing their jobs, a former HR officer told the EEOC.
Bowlero’s lawyers previously called any allegations against Shannon “meritorious.”
While it’s not uncommon for a company, especially one of Bowlero’s size, to encounter an EEOC complaint from a former employee, it’s rare for the EEOC to identify a valid cause.
Throughout fiscal year 2021, according to the most recent data available, the agency found reasonable cause in just 2.8% of the thousands of age discrimination charges it received.
The EEOC recently tried to settle the $60 million suit, but negotiations broke down when Bowlero responded with $500,000, according to attorney Daniel Dowe, who represents more than 70 former employees with claims against the company.
The case is now expected to go to court, where Bowlero could face even higher fines, experts said earlier.
