It is said that the 26-year-old woman’s boyfriend contacted someone within the company and informed them that CEO Gary Friedman, 54, was having the affair with the employee.
Friedman, who has been divorced for seven years, resigned on Wednesday and the woman, who has not been identified, resigned prior to him stepping down.
After the company, which is expected to go public in the fall, was informed of the relationship, they formed a special committed and hired a law firm to conduct their own investigation. During the investigation the woman said the relationship was consensual.
Friedman, who is responsible for turning the $1billion into a highly regarded luxury brand and the woman are reportedly still seeing each other.