Primark boss resigns after investigation into social conduct
Primark boss Paul Marchant has resigned after an investigation into his behaviour by Primark’s parent company ABF.
ABF’s share price fell nearly four per cent after the announcement.
ABF Finance Director Eoin Tonge will act as Primark chief executive on an interim basis, while ABF Group Financial Controller Joana Edwards will act as interim ABF Finance Director.
Marchant acknowledged his “error of judgement” and “accept[ed] that his actions fell below the standards expected by ABF”, the company said.
The investigation into Marchant, initiated by ABF and carried out by external lawyers, was initiated in light of an allegation by an individual about his behaviour toward her.
Chief executive of ABF George Weston said he was “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,” Weston said.
ABF said the company seeks to provide a “safe, respectful, and inclusive work environment” where employees and third parties are treated with “dignity and respect”.
“It is, indeed, a very disappointing, to say the least, end for Mr., Marchant and all at Primark and
ABF, where he has overseen the development of a fine value-based retailer with strong prospects
for growth,” Shore Capital analyst Darren Shirley said.
“That said, we concur with the views of Mr., Weston around the bigger factor of dignity
and respect being more important than any one person, no matter how senior.”
‘The change at the top will be unsettling’
He led Primark through a period of significant growth and international expansion, with the retailer now boasting more than 450 stores across 16 countries.
Susannah Streeter, head of money and markets, Hargreaves Lansdown: ’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.”
In its latest set of quarterly results, the brand reported UK sales of 0.3 per cent while overall sales fell 1.9 per cent.
Primark, which relies on in-store rather than online shopping, has suffered from low footfall as well as lower consumer spending in the UK.
“It’s clearly concerning investors who may be mindful that it could be an even greater challenge to revitalise Primark’s revenue – given that full-year guidance was lowered slightly from mid-single-digit to low single-digit growth.”
The Group will announce its interim financial results as planned on April 29, 2025.