Yahoo Finance Boohoo faces exodus of social media influencers
Boohoo could face an exodus of the prized social media influencers who promote its clothes after a reality TV star called for a boycott over a "sweatshop" scandal.
The comments by Vas J Morgan pose a threat to the fast-fashion business, which relies heavily on celebrities to talk up its products online. It spent at least £90m on celebrity endorsements and other marketing costs last year.
Mr Morgan has said he was saddened by the revelations that some of Boohoo’s clothes were made in a Leicester factory accused of paying illegally low wages.
In an Instagram post, he said: “Slavery is slavery and my heart hurts for the families that have suffered at the hands of companies that fail to do due diligence like this. Companies that make billions off the back of hard working people trying to feed their family.”
Mr Morgan appeared on ITV show The Only Way Is Essex for four years until 2018. Last month he accused the programme of "systematic racism", claiming he was treated differently to white members of the cast. He has also publicly supported the Black Lives Matter movement.
The influencer said he had collaborated with Boohoo as well as professionally and personally supporting its brands, which also include Nasty Gal and PrettyLittleThing.
Over the weekend, three Irish influencers came out to say they were either pausing work with the brands or have demanded answers following the claims.
Other high profile names to have worked with Boohoo include Little Mix and Love Island contestants Maura Higgins, Molly-Mae Hague and Tommy Fury. They have so far not commented.
Boohoo shares have fallen by a third since Friday with another 2.8pc decline on Tuesday to 288p - wiping more than £1.1bn off the business since the allegations were first reported.
The firm's top bosses, including its founding Kamani family, are in line for £150m worth of bonuses if the share price continues to rise by 2024.
Mr Morgan said: “Money is always used to silence and oppress us and I understand that not many other influencers will speak up about this.
“They will continue to post and contribute to the beast that is abusing so many innocent lives, but I urge all of you influencers, TV stars, to spare a thought for the women and men in these companies that were forced to work despite testing positive for Covid-19, forced to risk their lives by working in an unsafe environment for months during lock down all whilst earning £3.50 an hour.”
A post shared by Vas J Morgan (@vasjmorgan) on Jul 6, 2020 at 10:01am PDT
Boohoo said it was not aware that one of its suppliers was using the factory, which is in the spotlight following allegations in the Sunday Times that the facility was paying staff illegally low wages and flouting safety measures.
It has launched an investigation and vowed to cut ties with unethical suppliers.
Umar Kamani, son of Boohoo’s co-founder and boss of its PrettyLittleThing brand, wrote on Twitter on Tuesday: “The truth will always come out.”
He later deleted the comment.
