After rape charges were filed against the owner of Cleveland's TownHall, the owner's response was to fight—attack the prosecution, question the process, threaten legal action, and keep operating as usual. The framing was unmistakable: this was a legal fight, not a business crisis.
In contrast, after the owner of Charlotte's Sycamore Brewing was charged with raping a 13-year-old child, the response went the other direction. Leadership changed. The owner was removed. Divestment was announced.
And this week, Sycamore went further. Its taproom will close beginning today—not because the business committed any wrongdoing, but to allow for community healing and reflection. The current owner publicly expressed concern for the alleged victim, confirmed the complete removal of her former partner from the business, and made clear that Sycamore's future must align with the values of the community it serves.
These decisions matters. They weren't judgments about guilt. They were decisions about risk—and they inevitably reflected the values of the businesses themselves.
The businesses didn't commit the alleged acts. But they will be judged for how they responded.
Allegations of rape or sexual assault center first and foremost on a victim and real human harm. From the business's perspective, though, what also matters immediately is the response before there's a verdict.
Here's the hard truth founders and owners need to hear:
- Employees, customers, lenders, and partners don't wait for outcomes.
- Public statements become evidence.
- Inaction, denial, or "business as usual" are choices—and value statements—whether intended or not.
- Criminal allegations often lead to civil lawsuits.
And in closely held companies, one reality dominates everything else: When the owner is the brand, the brand may not survive the owner.
Crisis management isn't about deciding guilt. It's about deciding whether the company can function without a critical cog.
If the company doesn't make that decision quickly and decisively, the market—employees, customers, partners, and the broader community—will make it for you. And it will not wait for a verdict.