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You can find the current article at its original source at https://www.theguardian.com/business/2020/jul/08/boohoo-to-launch-independent-review-of-supply-chain
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| Boohoo to launch independent review of supply chain | Boohoo to launch independent review of supply chain |
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| Move follows allegations about pay and conditions at Leicester factories selling clothes to firm | Move follows allegations about pay and conditions at Leicester factories selling clothes to firm |
| The online fashion retailer Boohoo has announced it will launch an independent review of its UK supply chain after recent allegations that some factories in Leicester that sell clothes to Boohoo paid workers below the minimum wage and failed to protect them from coronavirus. | |
| Boohoo, which owns brands including Pretty Little Thing and Nasty Gal, said the review will be led by Alison Levitt QC, and said it would initially invest £10m towards “eradicating malpractice” in its supply chain. | Boohoo, which owns brands including Pretty Little Thing and Nasty Gal, said the review will be led by Alison Levitt QC, and said it would initially invest £10m towards “eradicating malpractice” in its supply chain. |
| The company said in a statement that the board was “shocked and appalled by the recent allegations” and was committed to working to rebuild the reputation of textile manufacturing in Leicester. | The company said in a statement that the board was “shocked and appalled by the recent allegations” and was committed to working to rebuild the reputation of textile manufacturing in Leicester. |
| The Boohoo group chief executive, John Lyttle, said the board is taking the matters seriously, adding: “We will not hesitate to terminate any relationships where noncompliance with our code of conduct is found.” | The Boohoo group chief executive, John Lyttle, said the board is taking the matters seriously, adding: “We will not hesitate to terminate any relationships where noncompliance with our code of conduct is found.” |
| The company will provide an update from its supply chain review in September, when it publishes its half-year results, with further updates due in January 2021. | |
| The group will also launch an independent third-party supply chain review, to be carried out by the ethical audit and compliance specialists Verisio and Bureau Veritas. | |
| The announcement of a review comes after retailers including Next, Asos and Amazon removed all Boohoo clothing from sale, and investors sold off the company’s shares, leading to £1.5bn being wiped off the brand’s market value in two days. | |
| The group’s share price fell by a further 8.5% in early trading on Wednesday after the announcement of the review, wiping another £280m off the value of the company. | |
| Boohoo said it began to investigate allegations of worker mistreatment as soon as it was made aware of them. | |
| It said that to date it had not found any evidence of suppliers paying workers £3.50 a hour, or less than minimum wage, which is currently £8.72 for those aged 25 and over. | |
| However, the company said it had found evidence that two of its suppliers had failed to comply with its code of conduct and it has terminated its relationships with both of those firms. | |
| Boohoo had previously strongly denied any responsibility for the alleged bad practices of its Leicester suppliers. | |
| The fast fashion brand confirmed that about 40% of the products it sells are currently made in the UK, although it does not own or operate any factories where its clothing is manufactured. |