Primark CEO Paul Marchant resigned immediately after misconduct allegations. ABF investigated, and he admitted poor judgment. The CFO steps in as interim CEO. Marchant led since 2009, growing Primark’s global presence. The brand, known for low prices, has faced criticism over labor conditions.

Primark's chief executive, Paul Marchant, announced his resignation with immediate effect on Monday following allegations of inappropriate behavior toward a woman in a social setting.

The parent company, Associated British Foods (ABF), confirmed that Marchant fully cooperated with an investigation led by external legal experts and acknowledged what was described as an "error of judgment."

Expressing disappointment over the situation, ABF CEO George Weston emphasized the importance of responsible conduct in business.

"Acting responsibly is the only way to build and manage a business over the long term," Weston stated. "Colleagues and others must be treated with respect and dignity. Our culture has to be, and is, bigger than any one individual."

Following the announcement, Marchant issued an apology directed at the accuser, his colleagues, and the company’s board.

In response to his sudden departure, ABF has appointed its chief financial officer as the interim CEO while the company searches for a permanent replacement.

Marchant had been at the helm of Primark since 2009, the same year the retailer first entered the German market.

The Irish fast-fashion chain has since grown significantly, operating over 450 stores across 17 countries in Europe and the United States.

Primark’s success has been largely driven by its combination of extremely low prices and stylish presentation. However, its pricing strategy has also been a source of controversy, drawing criticism over labor conditions in its supply chain.

The brand has previously faced scrutiny for poor working conditions in its manufacturing facilities. It was among the companies linked to the 2013 Rana Plaza disaster in Bangladesh, where the collapse of a textile factory resulted in the deaths of more than 1,000 workers.