Primark’s CEO resigns after “the error of judgment”

Paul Marchant, the director general of Primark, resigned “with immediate effect” of his role leading the clothing retailer at a reduced price after an allegation concerning his behavior, the company announced on Monday.

Mr. Marchant, who joined Primark in 2009, left after the company hired lawyers to investigate “an allegation made by an individual on his behavior towards her in a social environment”, said the parent company of British Foods, British association, Primark, in a statement.

He declared that he had cooperated in the investigation: “admitted his error of judgment and accepts that his actions fell below the standards expected by the company.” Mr. Marchant apologized to the individual, the board of directors and others in Primark, according to the press release.

“I am extremely disappointed,” said George Weston, Managing Director of Associated British Foods, in the press release. “We believe that high integrity standards are essential,” he added.

Primark is a low -cost clothing giant that has become synonymous with a certain type of cheap and consumable fashion. Arthur Ryan, its founder, fought to reduce prices.

Mr. Ryan appointed Mr. Marchant, who has long worked in the retail sale of fashion, to be his successor as general manager. Under M. Marchant, Primark prospered.

It has more than 450 stores in 17 countries and employs around 82,000 people. The retailer recorded sales of 9.4 billion pounds ($ 12.2 billion) for its last financial year, an increase of 5% compared to the previous year.

The retailer, founded in Dublin in 1969 and extended to England in 1973, is now a must in the main streets of the cities of the region: stores in Great Britain and Ireland represent about half of its sales.

Primark has praised in the United States, which represents around 5% of its sales. In January, the company led 29 stores in the country and signed 17 leases for future locations.

“Under the direction of Paul,” said the retailer in an online biography of his leaders, “Primark has become a truly international company.” The company noted that Mr. Marchant had expanded in Europe and the United States, “more than double the imprint of our store since its participation”.

The share of the parent company of Primark fell by approximately 4% after the announcement, almost its lower 52 weeks.

Primark did not immediately respond to a request for comments.