31st Mar 2025 09:09
(Alliance News) - Associated British Foods PLC on Monday said Paul Marchant has resigned as chief executive of fast fashion retailer Primark with immediate effect after a complaint about his behaviour.
Shares in the London-based food processing and retailing company were 4.9% lower at 1,845.00 pence each in London on Monday morning. It is the biggest faller on the FTSE 100 which is down 0.8%.
Marchant's departure follows an investigation, initiated by AB Foods, and carried out by external lawyers, into an allegation made by an individual about his behaviour towards her in a social environment.
Marchant cooperated with the investigation, acknowledged his "error of judgement" and accepts that his actions "fell below the standards expected by ABF", the firm said.
"He has made an apology to the individual concerned, the ABF board and also to his Primark colleagues and others connected to the business," AB Foods said in a statement.
AB Foods said Primark is committed to doing business the "right way at all levels of the company".
AB Foods Chief Executive George Weston 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."
AB Foods Finance Director Eoin Tonge will act as Primark chief executive on an interim basis.
Joana Edwards, AB Foods group financial controller, will act as interim AB Foods finance director.
"Both executives have the experience to perform these roles well," AB Foods said.
The group will announce its interim financial results as planned on April 29.
By Jeremy Cutler, Alliance News reporter
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