Paul Marchant has resigned as chief executive of Primark, admitting to an 'error of judgement' following an investigation into his behavior towards a woman.

Associated British Foods (ABF), Primark's parent company, confirmed that Marchant cooperated with the investigation and recognized that his actions fell short of the company's standards.

The resignation took effect immediately, underscoring the seriousness of the situation.

In the wake of the announcement, shares of ABF dropped by 4.9% in early trading, while the broader stock index fell by 0.8%.

Eoin Tonge, the finance director of ABF, has been appointed as the interim CEO of Primark.

Marchant led Primark for over 15 years, significantly increasing its operating profit and expanding its store count to over 450 locations across 17 countries.

Despite recent challenges, Primark reported sales of £9.4 billion for the latest financial year, reflecting a 5% increase from the previous year.

However, the company faced a 6% decline in like-for-like sales in the UK and Ireland as of January 2025, prompting forecasts of low single-digit sales growth for the year.

George Weston, CEO of ABF, expressed disappointment over the incident, emphasizing the importance of integrity and respectful conduct in the company's culture.

Analysts believe the CEO position at Primark is highly sought-after and expect significant interest from potential candidates, although ABF is not rushing to fill the role.

ABF has committed to supporting the individual who reported the incident and has maintained contact with her, offering continued support.

Despite the leadership change, ABF plans to release its first-half results on April 29, 2025, amid ongoing challenges for Primark.