Pressure on Boohoo to check supply chain
FAST-FASHION business Boohoo is under growing pressure to investigate its supply chain after bosses admitted the firm had no idea some of its clothes were made in a “sweatshop” factory in Leicester.
The company said it was not aware that it was using the facility, following allegations in The Sunday Times that it was paying staff illegally low wages and flouting safety measures.
The factory displayed the sign Jaswal Fashions – but Boohoo said this firm had ceased trading and the property was in fact now occupied by another, unidentified business.
Boohoo shares plunged 23pc, or 90.8p, to close at 296.7p – wiping £1.1bn off the value of the business. There are now questions over how much the cutprice internet brand knows about its other suppliers. The retailer insisted the factory in question was not a lead supplier and had been subcontracted without its knowledge.
Boohoo has started an investigation to determine “how our garments were in their hands”.
Staff at the plant claimed they were being paid £3.50 an hour – not even half of the minimum wage of £8.70.
The factory stayed open despite a local lockdown in Leicester, according to reports.
Boohoo, which sells T-shirts for as little as £3, called the working conditions “totally unacceptable”.