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Quiz suspends supplier amid exploitation claims | Quiz suspends supplier amid exploitation claims |
(about 1 hour later) | |
Fast-fashion firm Quiz says it has suspended a supplier after claims that a factory in Leicester offered a worker just £3 an hour to make its clothes. | Fast-fashion firm Quiz says it has suspended a supplier after claims that a factory in Leicester offered a worker just £3 an hour to make its clothes. |
It follows a report in the Times that an undercover journalist was told by a factory making Quiz clothes she would be paid below the minimum wage. | It follows a report in the Times that an undercover journalist was told by a factory making Quiz clothes she would be paid below the minimum wage. |
Quiz said if the claims were accurate, they were "totally unacceptable". | Quiz said if the claims were accurate, they were "totally unacceptable". |
Leicester's garment-making industry is already under scrutiny for alleged poor working conditions at some sites. | Leicester's garment-making industry is already under scrutiny for alleged poor working conditions at some sites. |
Last week, Boohoo faced a backlash after a report that workers at a factory supplying goods for its Nasty Gal brand could expect to be paid as little as £3.50 an hour. | Last week, Boohoo faced a backlash after a report that workers at a factory supplying goods for its Nasty Gal brand could expect to be paid as little as £3.50 an hour. |
The national minimum wage for people over 25 years-old is £8.72 an hour. | The national minimum wage for people over 25 years-old is £8.72 an hour. |
There were also claims that there were few measures in place to protect workers from the coronavirus. Leicester is currently in a localised lockdown following a spike in Covid-19 cases. | |
Retailers including Next, Asos and Zalando dropped Boohoo following the allegations. | |
Next also sells Quiz's clothing through concessions. A spokesman for Next said it "is now carrying out its own investigation, with full co-operation from the Quiz senior management team". | |
Last week, the National Crime Agency said it had visited a number of business premises in the Leicester area "to assess some of the concerns that have been raised in respect of modern slavery". | |
"These visits are likely to continue," it said. | |
Quiz chief executive Tarak Ramzan, said: "We are extremely concerned and disappointed to be informed of the alleged breach of national living wage requirements in a factory making Quiz products." | |
The company, which is based in Glasgow, said that the factory at the centre of the Times story was a sub-contractor of one of its suppliers. | |
It said: "Quiz has immediately suspended activity with the supplier in question pending further investigation." | It said: "Quiz has immediately suspended activity with the supplier in question pending further investigation." |
Quiz said it monitored "its supplier base through audits and site visits". | |
It added that it was "in the advanced stages of appointing an independent third-party partner to provide more regular audits of suppliers in the Leicester region". | It added that it was "in the advanced stages of appointing an independent third-party partner to provide more regular audits of suppliers in the Leicester region". |
Boohoo said last week that it was conducting a probe into exploitation claims, and has hired Alison Levitt QC, a barrister specialising in business crime and financial services, to lead an independent investigation. | |
Quiz's share price fell by 10% to 6p following its statement. | |
The company has been facing difficulties. Last month, it hired KPMG to restructure its business, including renegotiating rental agreements on its High Street stores. |
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