Strip Clubs Out As Under Armour Alters Corporate Culture

Sports apparel company Under Armour (UA) is accelerating plans to improve its corporate culture following a report from The Wall Street Journal.

According to the article by WSJ, Under Armour previously let certain members within its staff charge strip club visits to their corporate credit cards without question. The article that called out Under Armour practices mentioned that the company’s executives and employees, including CEO Kevin Plank, went to strip clubs with co-workers and athletes over the years alongside “many attendees.”

While Plank was mentioned as one of the participants in the strip club activities, the company told the publication that its CEO didn’t conduct any business while at the clubs or use any company funds during his visits.

The actions of these executives and employees were found to be demeaning to the women that worked at Under Armour, the report said. Several current and former employees, as well as exuecutives, were interviewed as part of the investigation.

In a letter provided to CNN Business by Plank and President Patrik Frisk told of how difficult the WSJ article was to read, adding that they intend to make a “meaningful cultural transformation.”

“This is not the culture we envision for Under Armour,” they wrote. “We can and will do better.”

The report comes after Under Armor released a letter to its employees in February stating that it would no longer reimburse employees for expenses pertaining to adult entertainment and gambling.

In a statement to CNBC, Under Armour said that it has “addressed these serious allegations of the past and will continue to address workplace behavior that violates our policies. Inappropriate behavior that challenges our values or violates our policies is unacceptable — and will not be tolerated. We are committed to providing a respectful and inclusive workplace."

As of Tuesday afternoon, UA’s stock was down over 3 percent.