Paul Marchant, the CEO of Primark, has resigned after an investigation into his behaviour toward a woman in a social setting.
Marchant, who had led the fast-fashion retailer since 2009, apologized to the individual involved and stepped down with immediate effect, according to a statement from the company on Monday, according to news agency AP.
Following the announcement, shares of Primark’s parent company, Associated British Foods (ABF), dropped 4.9%, compared to a 0.8% decline in the UK’s benchmark stock index.
Primark confirmed that Marchant acknowledged his poor judgment and accepted that his actions did not meet the company’s standards.
The retailer, with 451 stores in 17 countries across Europe and the U.S., emphasized its commitment to a “safe, respectful and inclusive” work environment.
Eoin Tonge, ABF’s finance director, has been appointed as Primark’s interim CEO.
The investigation was conducted by external lawyers, with Marchant fully cooperating, ABF stated. The company also underscored the importance of maintaining high standards of integrity in its operations.
“We believe that acting responsibly and upholding integrity are essential to building and managing a business over the long term,” said ABF Chief Executive George Weston. “I am immensely disappointed by the situation.”
