Boohoo may face US ban over slave labour claims
ONLINE fashion retailer Boohoo faces a possible ban on importing its goods into the US following allegations of slave labour at some its suppliers.
Boohoo said it was not aware of any investigations by American customs officials and that it was continuing to fulfil US orders. Boohoo generated more than a fifth of its sales in the US last year and its shares fell more than 5pc yesterday.
Sky News reported that US authorities had seen enough evidence from campaigners that Boohoo was using forced labour in its supply chain. Duncan Jepson, a lawyer who runs campaigning organisation Liberty Shared, told Sky there was “compelling” evidence of labour abuses at companies selling goods to Boohoo.
In a statement, Boohoo said: “The group has not received any correspondence from, nor is it aware of any investigation by, US Customs and Border Protection. Over the past eight months the group has been working closely with UK enforcement bodies. If the group were to discover any suggestion of modern-day slavery it would immediately disclose this to the relevant authorities.”
Last year an independent review concluded that Boohoo’s senior directors knew “for a fact” that there were “serious issues” with the treatment of workers in the company’s Leicester factories since at least December 2019.
Alison Levitt QC, who was hired by the company to review its practices, found the reports of poor working conditions and low pay at the factories to be “substantially true”. She found no evidence that Boohoo or its officers committed any criminal offences.