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The chief executive of fashion chain primark has resigned with immediate effects following an investigation into alleged inappropriate behaviour towards a woman.
Parent Company Associated British Foods Said Paul Marchant, who has led the fashion retailer for 16 years, has “co-operated with the investigation, accepted his error of judgment and accepted that his actions have been fallen below the standards expected” by the ftse 100 Company.
Marchant’s departure follows an investigation, initiated by abf and carried out by external lawyers, into an allegation made by an individual about his behavior towards her in a social environment.
He will be replaced by eoin tonge, abf’s finance chief, who will act as Primark Chief executive on an interim basis. Shares fell 4 per cent in morning trading in London.
ABF’s Chief Executive George Weston said he was “immensely disappointed”, adding: “Acting responsiblely is the only way to build and manage a business over the long term. Colleagues and others must be treated with dignity. Our culture has to be, and is, bigger than any one individual.”
The Company added that it sought to provide “a safe, respectful, and inclusive work environment where all employees and third parties are treated with dignity and respect”. ABF said it would continue to offer support to the individual who brought this behavior to its attention.
Marchant, who is widely recognized for being a skilled retailer by peers in the industry, having led primark successfully for many years, apologised to the individual concerned, the ABF board and primark employees, our others, the Company said.
Marchant did not immediately respond to a request for comment.
Marchant joined Primark as chief operating officer in 2009 and became chief executive the same year, taking the reins from Primark Founder Arthur Ryan. He previously worked for retailers including Debenhams, Topshop, River Island and New Look.
He spearheaded the clothing retailer’s European and US expansion and more than doubled the number of stores during his tenure.
Primark is the Jewel in the Crown of the ABF conglomerate, which owns other brands such as ovaltine, ryvita and twinings, and spans agriculture, ingredients, sugar and grocery.
Primark’s revenues last year accounted for almost half of the group’s £ 20bn in Revenue.
