Primark appoints new permanent boss as parent firm reviews spin-off

Primark owner Associated British Foods (ABF) has named Eoin Tonge as the permanent boss of the high street fashion chain, ahead of a potential demerger.

Mr Tonge stepped in as interim Primark boss a year ago to replace the chain’s previous chief executive, Paul Marchant, after he resigned over an allegation of inappropriate behaviour.

Mr Marchant resigned from the role last March following an incident related to “his behaviour towards (a woman) in a social environment”.

At the time, ABF said Mr Marchant co-operated with the investigation, “acknowledged his error of judgment and accepts that his actions fell below the standards expected by ABF”.

Mr Tonge, who was also ABF’s finance director, has now taken over the Primark role permanently with immediate effect.

The new boss, who was previously finance and strategy boss at Marks & Spencer, will be supported by the appointment of Filip Ekvall in the new post of chief commercial officer.

George Weston, chief executive of ABF, said: “Following a comprehensive search process, I am delighted to confirm Eoin as chief executive of Primark.

“Over the past year he has demonstrated the leadership, judgment and consumer insight needed to enable Primark to capture the significant opportunities ahead.

“The changes he is implementing are at an early stage but are already having a tangible benefit in a challenging environment.”

In its previous update in January, ABF warned over profits after sales across the discount clothing chain disappointed in “difficult” Christmas trading.

The appointment also comes as the consumer giant deliberates over whether to spin off the Primark business as part of a possible restructure.

In November, ABF, which also owns grocery brands such as Twinings and Ryvita, said it would review the structure of the group.

Mr Weston said that the “size and complexity of Primark” means it may need a separate leadership to oversee the retailer.