Primark’s chief executive Paul Marchant has resigned “instantly and effectively” his role in leading a discount clothing retailer after allegations of his actions, the company announced Monday.
According to British Cuisine, which stated in a statement about Primark’s parent company, British Cuisine, the company said in a statement that Merchant, who joined Primark in 2009, left after the company hired an attorney after investigating “an allegations of individuals making about their actions regarding their actions in a social environment.”
He cooperated with the investigation and said he “accepted the error in his judgment and accepted that his actions fell below the expected standards for the company.” According to the statement, Merchant apologised to individuals, the board of directors and others on Primark.
“I’m extremely disappointed,” George Weston, CEO of related British Cuisine, said in a statement. “We believe that high standards of integrity is essential,” he added.
Primark is a low-cost clothing giant that has become synonymous with certain types of cheap and consumable fashion. Its founder, Arthur Ryan, fought to lower prices.
Ryan appointed Merchant, who had worked in fashion retail for a long time, and succeeded him as CEO. Under Mr. Merchant, Primark flourished.
It has over 450 stores in 17 countries and employs around 82,000 people. Retailers recorded revenue of £9.4 billion ($12.2 billion) in their most recent fiscal year. This is an increase of 5% from the previous year.
Founded in Dublin in 1969 and expanded to the UK in 1973, the retailer is now a staple on the main streets of the region’s cities. Stores in the UK and Ireland account for about half of their sales.
Primark has invaded the US and accounts for around 5% of its sales. As of January, the company operated 29 stores in the country and signed 17 leases at future locations.
“Under Paul’s leadership,” the retailer said in an online biography of the executives that “Primark has become a truly international business.” The company said Mr. Merchant led the expansion into Europe and the US.
Primark’s parent company’s share price fell about 4% since its announcement, lowering 52 weeks.
Primark did not immediately respond to requests for comment.
