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London — The head of fast fashion chain Primark, Paul Marchant, has resigned with immediate effect after he admitted an “error of judgment” towards a woman in a social environment.
Parent-company Associated British Foods said in a statement on Monday that Marchant had accepted his actions fell below the standards expected, and the CEO of the £14bn ($18bn) conglomerate said he was “immensely disappointed”.
Primark has over 450 stores in 17 countries across Europe and the US, with Marchant growing operating profit from about £250m to over £1bn and more than doubling its store footprint during his 15 years-plus in charge.
Primark, founded in Ireland and with a huge presence on British high streets, contributes about half of group profit to AB Foods, which also owns major grocery, sugar, agriculture and ingredients businesses.
Shares in the parent company were trading down 4% on Monday morning.
“I am immensely disappointed. At ABF, we believe that high standards of integrity are essential,” said CEO George Weston.
“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.”
The group said Marchant’s exit followed an investigation it initiated that was carried out by external lawyers into an allegation made by an individual about his behaviour towards her in a social environment.
AB Foods said Marchant had “co-operated with the investigation, acknowledged his error of judgment and accepts that his actions fell below the standards expected by ABF.”
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