CEO Updates: Primark, Yum!

Two high-profile brands have unveiled changes related to their top executives. They are:

Primark (Dublin), whose CEO Paul Marchant has resigned from the Irish-based fast-fashion retailer, report a variety of sources, including the BBC. The announcement of Marchant’s exit was made by Primark’s parent company, Associated British Foods, following an allegation by a woman about “his behavior towards her in a social environment.”

Following an investigation by external lawyers, Marchant “acknowledged his error of judgment and accepts that his actions fell below the standards expected” by the business. Marchant co-operated with the investigation and apologized to the individual, said ABF.

Marchant took the top job at Primark in 2009, taking over from founder Arthur Ryan. With his exit, ABF’s Finance Director Eoin Tonge will become Primark’s interim CEO.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, told the BBC that Marchant’s departure comes at a challenging time for Primark. “This leadership upset comes amid weaker consumer sentiment which has meant footfall at its stores has fallen – and the chain has been losing market share in the UK.”

Streeter added that the company has performed well internationally, but noted: “There could be uncertainty ahead about the speed of expansion given the change of boss.” Much of the chain’s expansion efforts in recent years have involved the United States.

And

Yum! Brands Inc. (Louisville, Ky.), which announced that CEO David Gibbs has told the company’s board he plans to retire in the next year. The board, in turn, has established a succession planning committee to find Gibbs’ successor.

Gibbs will continue leading the company through the search for his replacement and expects to retire in the first quarter of 2026. He has worked for the restaurateur – which operates 61,000 restaurants in more than 155 countries and territories under the KFC, Taco Bell, Pizza Hut and Habit Burger & Grill brands – for four decades, assuming the top spot in early 2020.