Beauty and fashion company & Other Stories has come under fire after using a racial slur to describe one of its products.
An internal photo uploaded to a product overview system found the purple beanie hat used the n-word in its name.
The retailer said the team was investigating how the racial slur was used in the product’s naming, according to CNN Business.
“We are deeply sorry about the word connected to an image of a product that was to our stores during July,” wrote & Other Stories’ Managing Director Karolina Gutke, in a letter to employees.
“This is completely unacceptable and there is no excuse as to why this happened.”
The firm has suspended the team and managers responsible for the area of the business.
In a statement to Cosmetics Business & Other Stories said: "& Other Stories recently discovered that one of our internal documents included a reference to a product using a racial slur, for this we are deeply sorry.
"We take the use of racially inappropriate language extremely seriously and it is inexcusable.
"We understand the frustration and disappointment this situation has caused. We want our colleagues and customers to know that we value and respect all people.
"& Other Stories is committed to a safe and inclusive workplace. We have clear policies and procedures to prevent the use of racially inappropriate and insensitive language or images. Clearly these were not followed, and we are currently investigating why.
"While internal and external investigations are taking place, we have suspended the team and managers responsible for this area of the business. We will take the strongest possible action to ensure that racially divisive language or images are not used again."
The firm also told Cosmetics Business it plans to launch a number of initiatives, including an in depth training plan for staff, and has said it intends to improve the diversity of its team.
& Other Stories is a sub brand of retail heavyweight H&M and has 70 stores across Europe, the US and Asia.
Meanwhile, its beauty portfolio includes its own-brand make-up, as well as products from Huxley, Frank Body, Klairs and Skin Gym.
Cosmetics Business has contacted & Other Stories for comment.