Primark CEO resigns immediately over behavior allegation

Investing.com -- Associated British Foods (OTC:ASBFY) (AB Foods (LON:ABF)) announced that the chief executive of its Primark clothing business, Paul Marchant, has resigned immediately.

His resignation comes in the wake of an allegation made by an individual about his behavior in a social setting.

Primark, a fast fashion chain, is a significant part of AB Foods, contributing about half of the group’s profit. The announcement of Marchant’s resignation was made on Monday.

The group stated that Marchant cooperated with an investigation led by external lawyers into the allegation. He acknowledged his "error of judgement" and accepted that his behavior fell below the standards that AB Foods expects.

In the interim, Eoin Tonge, the finance director of AB Foods, will take over as the CEO of Primark. He will work with the senior management team at Primark and the Strategic Advisory Board of Primark.

Additionally, Joana Edwards, the financial controller of AB Foods, will act as the interim finance director.

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