Primark boss quits after complaint about behaviour #CanadaFinance

Primark boss Paul Marchant has resigned following an allegation by a woman about “his behaviour towards her in a social environment”.

Associated British Foods (ABF), which owns Primark, said following an investigation by external lawyers, Mr Marchant “acknowledged his error of judgement and accepts that his actions fell below the standards expected” by the business.

Mr Marchant co-operated with the investigation and apologised to the individual, said ABF.

George Weston, chief executive of ABF, said: “I am immensely disappointed. Colleagues and others must be treated with respect and dignity. Our culture has to be, and is, bigger than any one individual.”

He added: “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.”

The company said it remains in contact with the individual “who rightly raised her concerns and have offered her our support”.

Mr Marchant became chief executive of Primark in 2009, taking over from the firm’s founder Arthur Ryan.

While Primark – or Penneys as it is known in Ireland – has been around since 1969 when Mr Ryan opened the first shop in Dublin, it began ramping up its overseas expansion under Mr Marchant’s leadership.

Its low-price clothing and rapidly changing stock won over cash-strapped but fashion-conscious younger customers. Although, according to Catherine Shuttleworth, retail analyst at the consultancy Savvy, it has got “ubiquitous appeal”.

She said: “It has allowed access to affordable clothing for everybody and that has tied into a period of time where global supply chains have significantly changed, so that means you can access products and materials better and more easily.”

Prior to Primark, Mr Marchant worked for a number of retailers such as Debenhams, Topman and New Look. But, like his predecessor Mr Ryan, he has remained out of the spotlight.

Ms Shuttleworth said Primark’s leadership “flies under the radar a bit because – it sounds a bit cheesy – they let their shops and their products do the talking”.

Unlike many of its rivals, Primark resisted selling its products online before finally relenting in 2022 after Covid restrictions drove people to internet shopping. Even then, Primark only launched a click-and-collect service as opposed to offering deliveries.

Like other low-cost fashion chains, Primark has been criticised for producing cheap, throwaway clothing.

In a rare interview, Mr Marchant told the BBC in 2022: “We have worked so hard and continue to work hard on ensuring that we’re improving the quality and the durability of our clothing.