• Paul Marchant, CEO of Primark, has resigned after allegations of inappropriate behavior towards a woman.
• The resignation follows an investigation that confirmed his "error of judgment" during a social event.
• Shares of Associated British Foods (ABF), Primark's parent company, dropped nearly 4% after the announcement.
• Eoin Tonge has been appointed as the interim CEO while Marchant steps down.

Paul Marchant, the Chief Executive Officer of fast-fashion retailer Primark, has resigned with immediate effect following an investigation into his behavior towards a woman in a social setting. The inquiry, which was conducted by external lawyers, concluded that Marchant acknowledged he had made an “error of judgment” and accepted that his actions did not meet the company’s standards. According to BBC, he apologized to the individual involved and also expressed regret to the board and his colleagues.

The announcement of Marchant's resignation elicited a significant market reaction, with shares in Associated British Foods (ABF), the parent company of Primark, declining by approximately 4% shortly after the news broke. In a statement reflecting on the situation, ABF’s Chief Executive George Weston expressed his “immense disappointment”, emphasizing the need for integrity and a respectful work environment. “Colleagues and others must be treated with respect and dignity,” he stated, as reported by Reuters.

Marchant, who had led Primark since 2009, played a pivotal role in expanding the retailer into international markets, growing sales enormously within the company, which operates over 450 stores in 17 countries across Europe and the United States. Following his departure, finance director Eoin Tonge has been designated as the interim CEO and will work alongside the current management team to ensure stability during this transitional phase at Primark.

ABF further stated that they remain in contact with the individual who raised the concerns and have extended their support to her. This incident highlights the ongoing challenges faced by major corporations in upholding ethical standards and ensuring a safe working environment, as emphasized by Weston’s remarks on corporate responsibility. For more information, read the full report on India Times.