Primark CEO Paul Marchant Resigns Following Company Investigation
- Paul Marchant resigns as CEO of Primark following investigation into his behavior toward a woman in a social environment.
LONDON— Paul Marchant , the longtime chief executive officer of clothing giant Primark , has resigned with immediate effect following a company investigation into his behavior toward a woman in a "social environment."
Primark 's parent Associated British Foods said that Eoin Tonge, ABF finance director, will act as interim CEO and work with the senior Primark management team and strategic advisory board. Joana Edwards, ABF group financial controller, will act as interim ABF finance director.
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Primark saw its shares fall 2.2 percent to 18.98 pounds following the announcement late Monday morning London time.
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 toward her in a social environment.
ABF said Marchant had cooperated with the investigation, "acknowledged his error of judgment, and accepts that his actions fell below the standards expected by ABF."
The company added that Marchant has apologized to the individual, the ABF board and Primark colleagues and others connected to the business.
ABF said it seeks to provide "a safe, respectful and inclusive work environment where all employees and third parties are treated with dignity and respect. Primark is committed to doing business the right way at all levels of the company."
The company added that it will continue to offer support to the individual who brought this behavior to its attention.
George Weston , CEO of ABF, said: "I am immensely disappointed. 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."
Marchant had served at Primark for more than 16 years and overseen its growth to nearly 9.5 billion pounds in revenue, and 1.1 billion pounds in operating profit. Before joining Primark he served as chief operations officer for the British high-street retailer New Look and was also trading director of Debenhams.
Some of Primark's growth has been coming from the U.S., and New York in particular.
In an interview earlier this year, Rene Federico , Primark's head of marketing for the U.S., said New York remains a key market for the brand due to its "global influence." The company is planning a major store opening on 34th Street in 2026 which she said will be a "mecca for style, and for retail."
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