Tom Shannon, the CEO of Bowlero, has called allegations of discrimination against the bowling alley operator “absurd.” However, he has also acknowledged that the federal probe into these allegations may have contributed to recent struggles for the company’s stock.
The U.S. Equal Employment Opportunity Commission (EEOC) proposed a $60 million settlement in January to resolve the investigation into age discrimination and retaliation claims against Bowlero. However, talks over the settlement failed in April, and the case is now being referred to the EEOC’s general counsel for potential enforcement action.
Shannon has stated that he does not believe any potential action taken against Bowlero will materially affect the company. However, he has acknowledged that the investigation may have contributed to the company’s disappointing commentary about foot traffic during its earnings call last month, which has caused the company’s stock to drop by more than 7% in the last month.
Shannon has also denied any wrongdoing by Bowlero, stating that the allegations “don’t pass the sniff test” and “don’t pass any common sense.” The EEOC investigation involves claims from at least 73 former employees who allege they were fired based on their age or out of retaliation.
The agency’s proposed settlement is not public, but it was revealed to CNBC by a lawyer representing more than 70 former employees who made claims against Bowlero to the EEOC. Shannon has suggested that the complainants’ attorney put the information out there “along with a complicit journalist” at CNBC.com, but CNBC has stood by its reporting on Bowlero.
Bowlero CEO Tom Shannon has dismissed discrimination claims against the company as “absurd” and denied any wrongdoing. However, he has acknowledged that the federal probe into these allegations may have contributed to recent struggles for the company’s stock. The case is now being referred to the EEOC’s general counsel for potential enforcement action.
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