In This Article:
The boss of Primark has resigned following an investigation into his behaviour towards a woman.
Paul Marchant, chief executive of the budget retailer, has stepped down with immediate effect after the woman made an allegation about his conduct at a social event.
Mr Marchant’s shock departure is understood to have come after he was rebuked by Primark previously over an “inappropriate communication” in a separate incident.
A spokesman for Primark’s parent company, Associated British Foods (ABF), said: “One previous incident involving inappropriate communication was investigated some time ago. Proportionate action was taken at the time.”
However, the latest allegation is understood to have been of a physical sexual nature. It is believed to have happened towards the end of last year and involved a different individual.
ABF said Mr Marchant had cooperated with an investigation carried out by external lawyers.
It said the fashion boss “acknowledged his error of judgement and accepts that his actions fell below the standards expected by ABF”.
ABF said Mr Marchant, who has served as Primark’s chief executive since 2009, had apologised to the woman concerned, as well as to the company’s board and his colleagues. He is understood to have handed in his resignation over the weekend.
‘Immensely disappointed’
The London-listed group, which is controlled by the Canadian billionaire Weston family, said it was committed to providing a “safe, respectful, and inclusive work environment”.
It added that it would continue to offer support to the individual that brought Mr Marchant’s behaviour to its attention.
The company declined to give any further details of the woman involved, including whether she was an employee. It also refused to comment on details of the allegation.
George Weston, chief executive of ABF, said: “I am immensely disappointed. At ABF, we believe that high standards of integrity are essential.
“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.”
Share price tumbles
It comes at a difficult time for Primark, which in January was forced to cut annual sales forecasts, citing weaker spending from UK customers.
ABF had said the high street chain was facing “a challenging retail environment”, adding there was particular pressure on retailers that targeted lower-income customers.
During his tenure at Primark, Mr Marchant oversaw the retailer’s expansion in Europe and the US.