The British group Associated British Foods (ABF) is expected to present a strategy to spin off its Primark fashion division from its diversified food portfolio this Tuesday, according to Reuters. The move follows a comprehensive structural review with the aim of increasing long-term shareholder value.
Primark currently operates 486 stores in 19 international markets. Despite its size, the fashion retailer recorded a 2.7 percent decline in like-for-like sales in the Christmas quarter.
Spinning off Primark remains the central option
The London-based parent company initiated the structural review last year with support from consultancy Rothschild. George Weston, ABF’s chief executive officer (CEO), announced in November that the results would be published by April 21, 2026 – to coincide with the announcement of the half-year figures.
Weston said that spinning off the clothing chain was the board’s “preferred option.” The strategic move is being prepared in coordination with Wittington Investments, the Weston family’s holding company. This intends to retain majority control over both business areas even after the separation.
The structural review takes place against the background that ABF shares fell by 14 percent last year. By separating the retail business from the food group, the board wants to address valuation differences between the two segments.
Management strengthened as part of the realignment
ABF has formalized leadership of its fashion division with the appointment of Eoin Tonge as Primark’s permanent CEO. Tonge, previously CFO of the ABF Group, had already led the retailer on an interim basis since March 10, 2025. It followed the surprise departure of Paul Marchant.
The management team was also further strengthened with the engagement of Filip Ekvall, a former manager of the Swedish brand H&M. Ekvall will take on the newly created position of Chief Commercial Officer.
These personnel decisions significantly strengthen Primark’s leadership structure as the company prepares for a possible independent future.
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