Marchant, who has worked with the company for 15 years, was managing director for Robert Horne prior to becoming a director at Paperlinx in 2010.

He is "passing on the baton" to Dave Allen, current Paperlinx executive vice president for UK, Ireland and Canada.

Allen will take over Marchant’s role immediately on an interim basis while the company searches for a permanent replacement from external and internal locations.

Allen said: "My current role accounts for 46% of the Paperlinx business globally. So while I will be extremely busy with the additional duties, I am looking forward to the challenge.

"I don’t yet know how long I will take on the position for, but I believe a replacement will be found in a matter of months."

Allen credited Marchant with being a "key driver" behind Paperlinx’s strategic review over the past year, but believes that his decision to leave comes at a "turning point for the company".

Marchant’s decision has been announced as Paperlinx entered sales agreements with Heinzel Group for its operations in Slovakia, Hungary, Slovenia, Croatia and Serbia, and local management bought its South African merchant, Finwood. These sales form the final part of Paperlinx’s year-long global restructuring scheme in an attempt to bring the company back to profit.

The most recent sales have amounted to £18m, boosting the company’s cash return to £78m with the £60m made from the sales of its Italian and American businesses in June.

Allen said that the money would go towards paying back around A$20m of debt, restructuring the remaining businesses and funding growth within the company.

The company has identified its growth markets as packaging and sign and display and plans to target key geographical sectors in the UK, Western Europe, Canada and Australia. Paperlinx will focus on these key areas to promote the growth of the company.

Allen said that restructuring businesses in the UK and continental Europe, including some closures and mergers, is next on Paperlinx’s cost cutting programme.

It is not yet known where Marchant’s career path will turn following his departure from Paperlinx, but Allen confirmed that Marchant’s resignation was his own decision.