Primark's CEO resigned over an allegation of inappropriate behavior, which was an 'error of judgment,' company says
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- Fashion retailer Primark's CEO Paul Marchant resigned after an allegation of inappropriate behavior.
- Marchant said during an investigation that he'd made an "error in judgment."
- The exact nature of the allegation against Marchant is not publicly known.
The CEO of a major budget fashion retailer has stepped down after a woman made an allegation of inappropriate behavior against him, the company says.
According to a press release by Primark's owner, Associated British Foods, Paul Marchant has resigned as its boss, effective immediately.
ABF launched an investigation, which was carried out by an external law firm after a woman made an allegation about Marchant's behavior in a social environment.
No other information about the allegation was given.
Marchant cooperated with the investigation and "acknowledged his error of judgment," the release states.
Per the press release, Marchant accepted that his actions "fell below the standards expected by ABF" and apologized to the woman, his colleagues at Primrk, and the ABF Board.
"As we have committed to publicly, ABF seeks to provide a safe, respectful, and inclusive work environment where all employees and third parties are treated with dignity and respect," the press release says. "Primark is committed to doing business the right way at all levels of the company."
Marchant had been Primark's chief executive since 2009. In the interim, ABF's finance director, Eoin Tonge, will take over Marchant's role.
"I am immensely disappointed," said George Weston, the chief executive of ABF. "At ABF, we believe that high standards of integrity are essential. Acting responsibly is the only way to build and manage a business over the long term. Colleagues and others must be treated with respect and dignity. Our culture has to be, and is, bigger than any one individual."
ABF's shares dropped as much as 5% during morning trading in London after the news of Marchant's departure was shared. By 10:30 a.m. local time (5:30 a.m. ET), it had recovered to a loss of around 3%.
ABF founded Primark in 1969 in Dublin, where it still trades under its original name, Penneys. In 2015, Primark opened its flagship store in the US in Boston. There are now 29 stores across 12 US states, including New York and Orlando, which opened in August last year.
The company also launched its first US campaign that month, entitled "That's So Primark," and aims to have 60 US stores by 2026.