Primark boss Paul Marchant quits after behaviour allegations spark probe

The chief executive of Primark has resigned with immediate effect after allegations about his behaviour sparked a formal investigation.

Primark owner Associated British Foods said on Monday Paul Marchant had ‘acknowledged his error of judgement’ and quit after an allegation was made ‘by an individual about his behaviour towards her in a social environment’.

Marchant has served as Primark boss since 2010 after joining a year earlier following roles at Debenhams, Topman, River Island and New Look.

ABF said he had accepted that his actions ‘fell below the standards expected’, and had apologised to the individual concerned and the wider business.

Finance director Eoin Tonge will step in as CEO on interim basis, while group financial controller Joana Edwards will temporarily step into his role.

ABF boss 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.’

ABF added: ‘The group will continue to offer support to the individual who brought this behaviour to its attention.

‘As we have committed to publicly, ABF seeks to provide a safe, respectful, and inclusive work environment where all employees and third parties are treated with dignity and respect. 

‘Primark is committed to doing business the right way at all levels of the company.’

It follows a disappointing performance at Primark over the crucial Christmas trading period, which saw Primark hit by ‘cautious’ shoppers and unfavourable weather as ABF slashed sales expectations for the full year.

Sales in the UK and Ireland fell by 4 per cent over the festive period, with a like-for-like drop of 6 per cent.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: ‘The change at the top will be unsettling particularly given that Primark delivered a very mixed bag of results at the last count.

‘Primark continues to be the main story for ABF, bringing in around half of the group’s revenue, but performance has been very varied across regions. 

‘This leadership upset comes amid weaker consumer sentiment which has meant footfall at its stores has fallen – and the chain has been losing market share in the UK.

‘There could be uncertainty ahead about the speed of expansion given the change of boss.

‘It’s clearly concerning investors who may be mindful that it could be an even greater challenge to revitalise Primark’s revenue.’

ABF shares were down 3.1 per cent to 1,880.5p in early trading on Monday.