Paul Marchant has resigned as the boss of high street fashion giant Primark following an allegation about inappropriate behaviour.
The retailer’s parent business, Associated British Foods (ABF), told investors about his exit on Monday morning.
The chief executive admitted to an “error of judgment” after an investigation following an allegation from a woman.
Here the PA news agency looks at who the businessman is and what we know about the incident:
– Who is Paul Marchant?
Mr Marchant was the chief executive of Primark – the 450-strong chain of fashion shops – until Monday.
The 56-year-old is a veteran of the retail sector. He previously worked at a raft of major UK high street brands including Debenhams, Topman and River Island.
Mr Marchant was also the chief operating officer for rival New Look before joining Primark in the same role.
– How long has he been at Primark?
The executive joined Primark in 2009 as chief operating officer under Primark founder Arthur Ryan, before succeeding him at the Dublin-based group later that year.
– What has he done at the company?
He is widely recognised in the sector for helping to drive the global expansion of the value fashion chain, particularly growing beyond its core markets in the UK and Ireland.
The group doubled its estate to more than 450 shops under his stewardship and is on track to grow further, recently revealing plans for 530 shops by the end of next year.
In the UK, the company’s budget position helped it to take market share in the fashion sector from more traditional rivals, such as Debenhams and Marks & Spencer.
However, the company was knocked by the Covid-19 pandemic in 2020, which forced stores to close temporarily.
Since this, the company has also had to manage sharp increases in its costs, as well as increased pressure from Asia-based rivals such as Shein and Temu who have focused on particularly low-priced offerings.
Mr Marchant led Primark’s growth in mainland Europe, with dozens of stores across France, Spain, the Netherlands and other countries.
The retailer has also rapidly grown in the US in recent years, with plans for 60 stores in the country by next year.
– What do we know about the allegation against him?
So far, the company has provided limited details regarding the allegation.
It said the complaint was “made by an individual about his behaviour towards her in a social environment”.
– How has the company responded?
ABF launched an investigation into the allegation, which was carried out by external lawyers.
Mr Marchant “cooperated with the investigation, acknowledged his error of judgement and accepts that his actions fell below the standards expected by ABF”, the company said.
Primark said it will continue to offer support to the individual who reported the incident.
George Weston, the chief executive and majority shareholder of ABF, said he was “immensely disappointed” by the allegation.
“Colleagues and others must be treated with respect and dignity,” he added.
“Our culture has to be, and is, bigger than any one individual.”
– What does it mean for Primark?
Primark has replaced Mr Marchant with ABF’s finance director Eoin Tonge as interim boss, working with the brand’s senior executives and strategic advisory board.
Joana Edwards, ABF group financial controller, will replace Mr Tonge on an interim basis.
Primark, which makes up almost half of ABF’s sales, brought in more than £9.4 billion in revenues in the 2024 financial year.
ABF will reveal its financial results for the past six months in an update on April 29.
In the most recent financial year, Primark saw sales grow on the back of its expansion, helping to boost the wider ABF group.
However, in its Christmas trading update, ABF said Primark’s like-for-like sales dipped 6% in the UK and Ireland over the 16 weeks to January 4 amid pressure on customer finances.
Analysts have said the incident therefore comes at a key time for the company as it seeks to stabilise its performance.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “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.
“Although Primark’s international performance was much better thanks to the group pressing ahead with its store rollout programme, there could be uncertainty ahead about the speed of expansion given the change of boss.”
Meanwhile, Shore Capital equity analyst Darren Shirley said the upcoming results announcement is likely to “be well set” already.
“We would also expect Primark to be progressing well at a group level, not being immune from a rather subdued British clothing market in the first quarter,” he said.
