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The chief executive of fashion chain Primark has resigned with immediate effect 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, had “co-operated with the investigation, acknowledged his error of judgment and accepted that his actions had fallen below the standards expected” by the FTSE 100 company.
Marchant’s departure follows an investigation, initiated by ABF and carried out by lawyers at Herbert Smith Freehills, into an allegation made by an individual about his behaviour towards her in a social environment late last year.
He will be replaced by Eoin Tonge, ABF’s finance chief, who will act as Primark chief executive on an interim basis. Shares fell as much as 4 per cent on Monday morning before closing 2 per cent down.
ABF’s chief executive George Weston said he was “immensely disappointed”, adding: “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 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”.
The company said it would continue to offer support to the individual who brought this behaviour to its attention. It declined to confirm whether the woman was a Primark employee.
Marchant, who is widely recognised for being a skilled retailer by industry peers, having led Primark successfully for many years, apologised to the individual concerned, the ABF board and Primark employees, among others, the company said.
ABF said on Monday that there had been a separate, earlier incident involving allegations of “inappropriate communication” relating to Marchant, adding that the group had investigated and taken “proportionate action” at the time.
Marchant did not respond to requests 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.
Because Marchant is not on ABF’s board, the company does not have to disclose his remuneration, nor the terms of his departure.
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 accounted for almost half of the group’s £20bn revenues last year.
Analysts at Barclays said the top job at Primark was one of the most coveted roles in UK retail and would probably receive a lot of interest from potential candidates.
