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Primark cuts ties with auditor KPMG ahead of Italian expansion

By Vivian Hendriksz

13 Jul 2015

Primark's parent company Associated British Foods has cut its ties with auditor KPMG after 80 years, as the conglomerate aims to launch the value fashion retail chain in Italy a year earlier than anticipated.

The company is set to hire Ernst and Young to conduct its accounting check following a vote at this year's shareholder meeting, according to the Telegraph. The decision comes ahead of new rules which will force large firms to change provider. "We thank KPMG for their strong contribution as the company’s auditors over many years and for the current year," commented Peter Smith, chairman of ABF audit committee.

The decision comes as Primark aims to open three stores in Italy, with the first opening its doors in Arese, to the northwest of Milan, in early summer 2016. As the second largest apparel market in Europe after Germany, Italy is set to be Primark's tenth European market. "We're following on from tremendous success in France," said ABF finance director John Bason. "We only went into France 18 months ago and that was the most successful new market entry we've had."

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