Primark boss quits after complaint about behaviour

Paul Marchant, the Chief Executive Officer of Primark, a brand under Associated British Foods (ABF), has resigned. This follows allegations by a woman accusing Marchant of "inappropriate behavior" towards her at a social event. The incident triggered an internal investigation within the company.

In a statement, ABF said that after an investigation by external lawyers, Marchant "acknowledged his misjudgment and accepted that his behavior fell below the standards the company expects." It is reported that Marchant cooperated with the investigation and has apologized to those involved.

ABF subsequently confirmed that Marchant had previously been involved in another incident involving "inappropriate communication." The company stated that this incident had been investigated "some time ago" and that "appropriate action" had been taken. ABF declined to provide further details, including whether these incidents involved colleagues or individuals outside the company. A spokesperson told the BBC that this was to protect their identities as much as possible.

Announcing Marchant's resignation, ABF Chief Executive George Weston said: "I am extremely disappointed. Colleagues and others must be treated with respect and dignity. Our culture must be above any individual, and it is." He added, "At ABF, we believe that high standards of integrity are essential. Acting responsibly is the only way to build and manage a business for the long term." The company said they would continue to "liaise with the individual who rightly raised the concern and provide her with support."

Retail analyst Catherine Shuttleworth said that Primark has been around since it opened its first store in Dublin in 1969, but under Marchant's leadership, overseas expansion grew rapidly. Its low-priced clothing and rapidly changing inventory have won the favor of young, fashion-conscious customers with tight budgets and have "universal appeal."

Susannah Streeter, Head of Money and Markets at Hargreaves Lansdown, said that Marchant's departure comes at a difficult time for Primark. "A change at the top will be unsettling, particularly given Primark's last set of results were a mixed bag," she said. "This leadership upheaval comes amid weaker consumer sentiment which has seen footfall to its stores drop and the chain has been losing market share in the UK."

Following Marchant's "immediate" departure, ABF's Finance Director Eoin Tonge will serve as Primark's interim Chief Executive Officer. The company's Financial Controller, Joana Edwards, will take over Tonge's position. The company said: "Both executives have the experience to step into these roles." ABF is controlled by the billionaire Weston family, who until 2021 also owned the department store Selfridges.