Paul Marchant, the CEO of Primark, has resigned as a result of a woman’s allegation regarding his conduct in a social setting.

Mr. Marchant “acknowledged his error of judgment and accepts that his actions fell below the standards expected” by the business, according to Associated British Foods (ABF), the company that owns Primark, following an investigation by external attorneys.

ABF stated that Mr. Marchant cooperated with the investigation and offered an apology to the individual.

George Weston, the CEO of ABF, expressed his profound disappointment: “I am deeply disheartened. Our culture must be broader than any single individual. Colleagues and others must be treated with respect and dignity.”

He further stated, “At ABF, we are of the opinion that maintaining high standards of integrity is imperative. The sole method of establishing and operating a business in the long term is to act responsibly.”

The organization stated that it continues to communicate with the individual who “appropriately expressed her apprehensions and has extended our assistance.”

Mr. Marchant succeeded Arthur Ryan, the company’s originator, as chief executive of Primark in 2009.

Primark, or Penneys as it is known in Ireland, has been in operation since 1969, when Mr. Ryan established the first store in Dublin.

However, it began to accelerate its international expansion under Mr. Marchant’s stewardship.

Cash-strapped but fashion-conscious younger consumers were attracted to the company’s frequently changing inventory and low-priced apparel. Its “ubiquitous appeal” is acknowledged by Catherine Shuttleworth, a retail analyst at the consultancy Savvy.

She stated, “It has facilitated the availability of affordable clothing for all individuals, which has coincided with a period in which global supply chains have undergone substantial transformations. Consequently, it is now possible to access products and materials more easily and effectively.”

Mr. Marchant was employed by several retailers, including Debenhams, Topman, and New Look, before joining Primark.

However, he has maintained a low profile, similar to his predecessor, Mr. Ryan.

Ms. Shuttleworth stated that 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.”

In contrast to numerous of its competitors, Primark initially opposed the sale of its products online.

However, it ultimately conceded in 2022 after Covid-19 restrictions compelled consumers to conduct their purchases online. Primark did not offer deliveries at that time; rather, it introduced a click-and-collect service.

Primark, like other low-cost fashion chains, has been criticized for its production of inexpensive, disposable apparel.