Shares in AB Foods fall by 3.5% as Primark CEO resigns
This follows allegations against Primark CEO, Paul Marchant, which led him to admit to an “error of judgement”.
Print1 April 2025
Paul Marchant, Primark chief executive officer (CEO) has recently resigned following a recent allegation made by a woman.
Marchant later apologised to the woman, admitting to an “error of judgement” in a social environment.
The clothing retailer contributes roughly half of the group profit to Associated British Foods (ABF) which owns major sugar, grocery, agriculture and ingredients businesses.
Responses to the resignation
In a statement, George Weston, CEO, ABF, said: “I am 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 added.
During Marchant’s tenure at Primark, they have extended profits from over £250 million to £1 billion, with merely half of that being contributed to ABF.
Eoin Tonge, the finance director of ABF, will act as CEO on an interim basis and Joana Edwards, financial controller, will act as interim finance director.
Analysts at Shore Capital, an independent investment group, said: “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”.
Primark statement
In a statement from Primark, they acknowledged Marchant’s departure albeit reinstating their core values.
These values include that everyone must be treated with respect and dignity, committing themselves to doing business the right way, at all levels.
The international retailer stated that they continue to remain in contact with the individual who raised her concerns and have offered their support.
They continue to encourage people with concerns about any individuals to share them with them.
Read more: Primark to advance its circular design training among colleagues with new partner
© 2025, ShelfLife by Ryan Brennan
Related Articles
IBEC call upon government to ‘act with urgency’ as tariffs confirmed by Trump →
Fans 0
Followers