Paul Marchant, the long-serving chief executive of budget fashion retailer Primark, has stepped down with immediate effect following an investigation into allegations of inappropriate behaviour. Primark’s parent company, Associated British Foods (ABF), announced his resignation on Monday, citing an incident involving a woman “in a social environment.”
Marchant, who led Primark for 16 years, played a crucial role in the retailer’s expansion across Europe and into the United States. However, his tenure ended abruptly after ABF’s internal investigation found that his actions fell below the company’s expected standards.
“Marchant cooperated with the investigation, acknowledged his error of judgement and accepts that his actions fell below the standards expected by ABF,” the company stated. “He has made an apology to the individual concerned.”
ABF further emphasized its commitment to supporting the person who reported the behaviour and reaffirmed its dedication to maintaining a professional and respectful workplace culture.
George Weston, ABF’s chief executive, expressed disappointment over the situation, stating, “I am immensely disappointed. Our culture has to be, and is, bigger than any one individual.”
While specific details regarding the nature of the behaviour were not disclosed, ABF’s swift response underscores its zero-tolerance stance on workplace misconduct.
Marchant’s departure creates a leadership gap at Primark, which has been a strong performer in the retail sector under his guidance. To ensure stability, ABF has appointed Eoin Tonge, the company’s chief financial officer, as interim CEO. The company is expected to begin a search for a permanent replacement in the coming months.
Primark has been a dominant player in the fast-fashion industry, known for its low-cost apparel and rapid global expansion. With Marchant at the helm, the brand successfully navigated challenges such as the COVID-19 pandemic and changing consumer trends. His sudden resignation marks a significant leadership transition for the company.
As Primark moves forward, the focus will be on maintaining its market position while upholding corporate integrity and ethical leadership within the organization.
