Fashion Boohoo says review finds ‘lots of failings’ in Leicester supply chain

Fashion Boohoo says review finds ‘lots of failings’ in Leicester supply chain


( Reuters) – An independent review for fashion seller Boohoo BOOH.L found many failings in its English supply chain after accusations about working conditions and low pay, the company stated on Friday, setting out steps it was taking to deal with the issues.

FILE IMAGE: A consumer walks pass marketing signboards for Boohoo and for ‘Pretty Little Things’, a Boohoo brand name, at Canary Wharf DLR station in main London, Britain, September 17,2018 REUTERS/James Akena

Boohoo commissioned the review, headed by senior lawyer Alison Levitt, in July after a destructive British media reports about factory working conditions in the city of Leicester in main England.

” Ms Levitt is pleased that Boohoo did not intentionally enable poor conditions and low pay to exist within its supply chain, it did not intentionally benefit from them and its service model is not based on making use of workers in Leicester,” Boohoo stated in a declaration.

Shares in the business, which sells own-brand clothes, shoes, devices and appeal items targeted at 16- to 40- year-olds, were up 11%by 0835 GMT, on track to gain back much of the marketplace value they had lost given that the July media report.

Boohoo stated the review discovered that some workers in its supply chain had actually not constantly been appropriately made up for their work and that many employees were not completely familiar with their rights and their obligations.

It said it identified that this was a widespread issue in the garment market and devoted to establishing and moneying a Garment & Textiles Community Trust governed by independent trustees to deal with difficulty.


Boohoo, which has actually grown into a business with a market value of over 4 billion pounds ($ 5.1 billion), acknowledged the need for modification.

” This (review) has actually determined considerable and clearly unacceptable problems in our supply chain and the steps we had taken to resolve them,” Boohoo CEO John Lyttle said.

” It is clear that we need to go further and faster to improve our governance, oversight and compliance,” he said.

The business laid out 6 actions it was requiring to enhance governance, consisting of appointing new independent directors to its board, making supply chain compliance a standing product at board meetings and the development of 2 committees to supervise risks to business and its supply chain compliance.

” General, we see the outcomes of the review as being broadly in line with our expectations, and believe the changes being called out represent further steps forward on the course to restoring investor self-confidence in Boohoo’s social responsibility,” JP Morgan experts stated.

Graphic – Boohoo vs rivals:

Reporting by Muvija M in Bengaluru; modifying by Patrick Graham and Jason Neely

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