The head of fast fashion retailer Primark resigned Monday after admitting that he made an “error of judgment” with a woman in a social environment.
Primark’s parent company, Associated British Foods PLC, said that Paul Marchant’s departure comes after a complaint was made about his behavior. AB Foods tapped Finance Director Eoin Tonge to become interim CEO immediately.
Marchant realized that his actions “fell below the standards expected by ABF” following
An investigation was initiated by AB Foods, and carried out by external lawyers, into the allegation the individual made about his behavior. According to the retailer, Marchant recognized his “error in judgement” and realized that his actions “fell below the standards expected by ABF.”
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The chief executive apologized to the individual, the Associated British Foods board and his colleagues as well as “others connected to the business,” according to the company.
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AB Foods Chief Executive George Weston said he was “immensely disappointed” in Marchant as the company believes “that high standards of integrity are essential.”
“Acting responsibly is the only way to build and manage a business over the long term,” Weston said. “Colleagues and others must be treated with respect and dignity. Our culture has to be, and is, bigger than any one individual.”
The retail chain was founded in Ireland in 1969 under the Penneys brand. Today, the multi-national brand operates across 17 countries in Europe and the US. It employs more than 80,000 people.
Primark has 450 stores globally. AB Foods also has several other divisions, including a grocery, sugar, agriculture and ingredients businesses, but its retail business contributes about half of group profit to AB Foods.
Barclays analysts said Marchant’s position, one of the top roles in UK retail, will likely receive a lot of interest from potential candidates.
“But we don’t think Primark are in a rush to fill the void until they find the right person to take charge,” they said.
Reuters contributed to this report.
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