Primark CEO Resigns After ‘Error of Judgment’

The head of fast-fashion chain Primark, Paul Marchant, has resigned with immediate effect after he admitted an “error of judgment” towards a woman in a social environment. Parent company Associated British Foods (ABF) said in a statement on Monday that Marchant had accepted his actions fell below the standards expected, and the chief executive of the 14 billion pound ($18 billion) conglomerate said he was “immensely disappointed.” ABF said Marchant’s exit followed an investigation it initiated that was carried out by external lawyers into an allegation made by an individual about his behavior towards her in a social environment.

Total Retail's Take: Marchant has served as Primark's CEO for over 15 years, helping to grow operating profit from about 250 million pounds to over 1 billion pounds and more than doubling its store footprint during that time. However, as the chief executive, he is held to a standard of conduct and behavior that is higher than most, and it is here that Marchant failed. Building the right organizational culture, one marked by respect and dignity, has been critical to the success and growth of Primark, according to George Weston, CEO of ABF. For that reason it was impossible to keep Marchant in his role as Primark CEO. Its new CEO will be tasked with maintaining the sales momentum Primark has enjoyed in recent years while also being a steward of the strong organizational culture that has been built.