Paul Marchant, CEO of Primark, has stepped down following a complaint by a woman regarding his behaviour in a social setting.

Associated British Foods (ABF), the parent company of Primark, said an independent investigation conducted by external lawyers concluded that Marchant admitted to an “error of judgement” and accepted that his conduct did not meet the company’s standards. ABF stated that Marchant fully cooperated with the investigation and has apologized to the woman involved.

ABF chief executive George Weston expressed disappointment over the matter, saying, “Colleagues and others must be treated with respect and dignity. Our culture has to be, and is, bigger than any one individual.” He added that integrity and responsible conduct are vital to the long-term success of the business.

The company confirmed that it remains in contact with the individual who raised the concern and has offered her ongoing support.

Following the announcement, ABF’s share price dropped nearly 4% to £18.64.

Marchant had led Primark since 2009, helping to solidify the brand’s reputation for affordable fashion and a strong presence on the High Street. Under his leadership, the retailer generated £9.4 billion in sales last year, contributing significantly to ABF’s total revenue of £20 billion.

With Marchant stepping down immediately, ABF’s finance director Eoin Tonge will serve as interim chief executive of Primark. Joana Edwards, the company’s financial controller, will take over as finance director. ABF expressed confidence in both executives, saying they are well-equipped to handle their new responsibilities. Photo by Xmate09, Wikimedia commons.