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Massage Envy CEO out after ‘consensual relationship’ with employee

Massage Envy has debuted a new look at its location in Mesa, Ariz.

Well-known retail veteran Joe Magnacca has resigned as chief executive of Massage Envy.

The nation’s largest provider of therapeutic massage and skincare services announced that Magnacca, who was appointed CEO in January 2016, has stepped down after he acknowledged having engaged in “a brief consensual relationship with an employee.” According to Massage Envy, Magnacca himself brought the information to the attention of the company's board, which then conducted an investigation. 

Prior to joining Massage Envy, Magnacca served as CEO of Radio Shack, from 2013 to 2015. Before that, he served as president, daily living products & solutions, Walgreens, 2011 to 2013, and in executive positions at Duane Reade, 2008 to 2011, and Shoppers Drug Mart, 2001 to 2008. Before that, he was with Loblaw Companies, 1984 -2011.

“While the individual confirmed that the relationship was consensual, Joe and the board determined it is in the best interest of the company and its franchisees for him to step down at this time,” Massage Envy stated. “The company is deeply committed to upholding the highest personal and professional standards across its business and this was the right action to achieve that outcome.”

In the wake of Magnacca’s resignation, Massage Envy has appointed Beth Stiller, most recently chief commercial officer, as CEO, effective immediately. Stiller joined Massage Envy in 2016 after spending six years at Walgreens and Duane Reade where she led product development, brand management and sourcing activities.

"We are fortunate to have a proven leader of Beth's caliber and experience to step into the CEO role as Massage Envy continues to deliver against its mission to provide professional and affordable wellness services for our franchisees' 1.5 million members," said Patti Larchet, executive chair. "With more than two decades of global and domestic experience in retail, branding, merchandising and management, Beth has a deep understanding of the brand, the business and the opportunities ahead." 

Earlier this month, McDonald’s fired CEO Steve Easterbrook, saying he “violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee.”

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