CEO of fashion brand Primark steps down, steps down after investigation into bad behavior with woman
CEO Steps down: The CEO of fashion brand Primark has resigned from his post after an investigation began into his behavior towards a woman. Paul Merchant, CEO of Primark since 2009, has apologized to the person concerned in this matter and announced his resignation with immediate effect. Let's know more about this.
The CEO of one of Europe's largest fast-fashion chains, Primark, has resigned after being investigated for his behavior toward a woman. Paul Merchant, the chief executive of the retailer since 2009, has apologized for his behavior toward the woman involved in the incident and resigned with effect from Monday.
After the CEO stepped down, shares of Primark's parent company Associated British Foods (ABF) fell 4.9% in early trade. While Britain's benchmark stock index fell 0.8%. "Marchant has admitted his error of judgment and acknowledged that his actions fell below the standards expected of the company," Primark said in a statement.
The retailer has 451 stores in 17 countries in Europe and the US. Associated British Foods finance director Eoin Tonge has been appointed interim CEO of Primark, ABF said in a statement.
Associated British Foods said the investigation was conducted by external lawyers and that Merchant cooperated with the probe. The company said it was committed to providing a "safe, respectful and inclusive" work environment.
ABF chief executive George Weston said in a statement: "I am extremely disappointed. We believe high standards of integrity are essential. Acting responsibly is the only way to build and manage a business for the long term."
