Bowlero CEO calls discrimination claims made in EEOC investigation 'absurd'

Bowlero CEO Tom Shannon connected Wednesday called favoritism claims against the fast-growing bowling alley relation "absurd," but acknowledged the national probe into those allegations whitethorn person wounded its banal price.

"These allegations are frankly absurd. They don't walk the sniff test. They don't walk immoderate communal sense," Shannon told CNBC's "Mad Money with Jim Cramer."

The U.S. Equal Employment Opportunity Commission successful January projected to settee its sprawling probe into property favoritism and retaliation claims against Bowlero for $60 million, CNBC reported past month. Talks implicit the colony failed successful April, and the lawsuit is being referred to the EEOC's wide counsel "for imaginable enforcement action," a missive sent by the bureau shows.

Shannon said Wednesday that helium did not deliberation immoderate imaginable enactment taken against Bowlero, the world's largest proprietor and relation of bowling alleys, would "be worldly to the institution successful immoderate way." But helium acknowledged the probe could person contributed to caller struggles for the company's stock, which has dropped much than 7% successful the past month, driven mostly by the company's disappointing commentary astir ft postulation during its net telephone past month.

"Could [the investigation] beryllium driving the banal down?" Cramer asked Shannon connected Wednesday.

"I mean, I suppose," helium said.

"Look, we person ne'er been deed by a lawsuit. We person ne'er been deed with anything, you know, successful presumption of evidentiary findings oregon thing similar that," Shannon added.

The EEOC probe into Bowlero involves claims from astatine slightest 73 erstwhile employees who allege they were fired based connected their property oregon retired of retaliation, company filings with the Securities and Exchange Commission show.

The agency's projected colony is not public. It was revealed to CNBC by lawyer Daniel Dowe, who represents much than 70 erstwhile employees who made claims against Bowlero to the EEOC.

Asked by Cramer astir whether the EEOC released the colony information, Shannon said helium thought the complainants' lawyer enactment the accusation retired determination "along with a complicit journalist" astatine CNBC.com.

CNBC said it stands by the reporting connected Bowlero.

"Our communicative astir Bowlero went done a rigorous reappraisal process," a CNBC spokesperson said successful a statement.

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