‘Many failings’ in Boohoo’s Leicester provide chain: evaluation

2020/09 28 07:09


An unbiased evaluation launched by Boohoo in July has “has recognized many failings within the Leicester provide chain and really helpful enhancements to boohoo’s associated company governance, compliance and monitoring processes”. The evaluation, led by Alison Levitt QC, adopted a media report of poor working circumstances within the firm’s UK provide chain.

In July, an undercover investigation by a British newspaper alleged a number of the Leicester factories supplying clothes to Boohoo had been paying employees simply £three.50 per hour and forcing some to work whereas sick. Boohoo denied claims of unlawful wages.

The corporate, whose portfolio consists of manufacturers Fairly Little Factor and Nasty Gal, mentioned the evaluation discovered that from “(on the very newest) December 2019, senior Boohoo administrators knew for a truth that there have been very severe points in regards to the therapy of manufacturing facility employees in Leicester” and “while it put in place a programme supposed to treatment this, it didn’t transfer shortly sufficient.”

It additionally mentioned “Boohoo should have appreciated the intense dangers created by ‘lockdown’ in relation to potential exploitation of the workforce of the Leicester factories”.

Nevertheless, Levitt was happy that the corporate “didn’t intentionally permit poor circumstances and low pay to exist inside its provide chain, it didn’t deliberately revenue from them and its enterprise mannequin will not be based on exploiting employees in Leicester”.

The evaluation discovered “ample proof that the steps which Boohoo is now taking in relation to remedying issues in its Leicester provide chain had been carried out almost a yr in the past” and weren’t “only a response to the adverse publicity in July and August 2020”.

The corporate has set out six steps to reinforce its provider audit and compliance procedures going ahead, considered one of which being the bolstering of its company governance by the appointment of recent unbiased administrators, and the launch of a provide chain compliance committee.

Fibre2Fashion Information Desk (DS)

An unbiased evaluation launched by Boohoo in July has “has recognized many failings within the Leicester provide chain and really helpful enhancements to boohoo’s associated company governance, compliance and monitoring processes”. The evaluation, led by Alison Levitt QC, adopted a media report of poor working circumstances within the firm’s UK provide chain.




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