Boohoo bosses ‘ knew of issues’

SENIOR directors at Boohoo knew about “serious issues” over how workers were treated at its supply chain in Leicester, before media reports in July brought the issue to the fore, a review found.

Lawyer Alison Levitt QC, who had been hired by the company to review its practices, said that whereas she found no evidence Boohoo had committed any crimes, staff at factories in Leicester had worked in poor conditions for low pay.

“From ( at the very latest) December 2019, senior Boohoo directors knew for a fact that there were very serious issues about the treatment of factory workers in Leicester,” Ms Levitt said.

“Whilst it put in place a programme intended to remedy this, it did not move quickly enough,” she added.

However, directors were aware of questions over its supply chain much earlier after reporters and politicians raised the issue. In May 2018 a story was published about “labour exploitation in Britain’s garment industry” which questioned how Boohoo was able to sell dresses so cheaply.

Months later, in November 2018, MPs grilled then co- chief executive Carol Kane about the prices of its goods.

Ms Levitt was appointed to review the company’s supply chain after worries over Leicester’s garment factories resurfaced when the city was put under lockdown because of Covid- 19.

A series of further claims were published in July about conditions in Leicester factories. Issues had also been highlighted as early as 2017 by Channel 4 – and the BBC had also reported on problems in Leicester.

Ms Levitt said that Boohoo “capitalised on the commercial opportunities offered by lockdown and believed that it was supporting Leicester factories by not cancelling orders”.

But, she said, “it took no responsibility for the consequences for those who made the clothes they sold”.

Boohoo chief executive John Lyttle said: “As a board, we recognise that we need to rebuild confidence that these matters will be dealt with appropriately and sensitively, and that they will not recur.”

‘ Whilst it put in place a programme intended to remedy this, it did not move quickly enough’