Yahoo Finance Boohoo tells Home Secretary it is investigating charges of malpractice in supply chain
Embattled fast fashion firm Boohoo has confirmed in a letter to Priti Patel, the UK Home Secretary, that it is taking action to investigate allegations of malpractice in its supply chain.
It has also called upon the Government to do the same.
The online retailer, which sells T-shirts for as little as £3, has recently come under scrutiny for allegedly paying factory workers in Leicester less than the minimum wage and forcing people to work during the pandemic without protection.
The company, which also owns the Nasty Gal and PrettyLittleThing brands, manufactures around 40pc of its products in the UK. It said in the letter that it was “proud to support UK manufacturing and the British fashion industry”.
“We firmly believe that 'Made in Britain' should be a label of pride for those wearing our clothes and badge of honour for those who make them.
“We wholeheartedly endorse the call by the British Retail Consortium, APPG for Fashion and Textiles and the APPG on Ethics and Sustainability for the Government to implement a 'Fit to Trade' licensing scheme that ensures all garment factories are meeting their legal obligations to their employees.”
Boohoo has previously said it was “shocked and appalled” by the claims first reported by the Sunday Times a fortnight ago. It said that Jaswal Fashions, where the undercover investigation took place, had never been a supplier and it did not occupy the site, despite the factory displaying the sign.
The investigation into its supply chain will be led by Alison Levitt QC, the former head of the business crime group at law firm Mishcon de Reya, and Brian Small, the company's deputy chairman.
Separately, it is also working with two ethical and compliance firms, Verisio and Bureau Veritas, to scrutinise its third party suppliers, whereby they are hired by some of Boohoo’s main suppliers. It has also vowed to inject £10m to “eradicate supply chain malpractice”.
From the start of the year Boohoo shares had risen 30pc but they have now erased those gains since the allegations were published. Shares closed 2.3pc lower on Friday at 229.50p, valuing the company at £2.89bn.
