Paul Merchant, Chief Executive Officer of the Primer, has resigned after examining a company in her behavior towards a woman in a social environment, the budget fashion chain owner Associated British Foods (ABF) announced on Monday.
His resignation with immediate effect comes as the CEO of Primark 16 years later, overseeing the expansion throughout Europe and the United States.
The company said in a statement, “Merchant collaborated with investigation, accepted its error of the decision and admitted that their work fell down from the required standards by ABF.”
The group said, “They have apologized to the person concerned.”
Agri-food giant ABF said that it continues to support the person who brought his behavior to its attention.
The group did not immediately give further details when contacted by AFP.
“I am very disappointed,” ABF Chief Executive Officer George Weston said in a statement.
He said that “Our culture should be bigger than any one person, and is.
For about half of the ABF sales, the Ireland-facilitated primer has worked in 17 countries and has more than 80,000 employees.
Leadership shakeup
Paul was the second Chief Executive Officer of the Merchant Company, successful of the founder Arthur Ryan, who led the company since its launch in Ireland in 1969.
ABF Chief Financial Officer, Eoin Tonge, will replace merchant on an interim basis.
“Changes on the top, especially given the change on the top, gave a very mixed bag of results in the final count,” said Suzana Streater, head of money and markets at Hargrevs Lansdowne.
“This leadership comes in the midst of troubled weak consumer spirit,” he said.
Its 450 stores mainly sell clothes and accessories, while cafes, eyebrows and hairdressors also host.
Shares at ABF fell two percent in the afternoon deals on London’s top level FTSE 100 index.
Premark’s UK sales exceeded six percent during the major festive season in late 2024.
“Although Premark’s international performance was much better for the group moving forward with his store rollout program, there may be uncertainty about the speed of expansion,” the streetter said.
March told AFP in November that he intended to expand further in the United States and Europe for primer.
It has signed with a franchise partner to open the store in the United Arab Emirates, Kuwait and potentially Bahrain and Qatar.
Low -cost fashion retailers have faced criticism from environmental campaigners, arguing that the brand’s “throwway” is a drain on fashion resources.
Human rights groups accused suppliers in countries where very little security is provided to workers.
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