Damaging report puts Boohoo under spotlight again

Boohoo Ireland 2020

Damaging report puts Boohoo under spotlight again

Damaging report puts Boohoo under spotlight again

In Irish fashion news, a recent auditors report has accused Boohoo of using 18 clothes suppliers who have paid their staff less than the minimum wage.

In an article published by The Guardian newspaper in the UK have raised concerns about the operations of the Manchester based fashion house who “allegedly” have been selling clothes from their suppliers who have not been paying their employees the required minimum wage.

According to results carried out by a third-party auditor, for the past 4 years, workers in factories used to purchase fashion goods by Boohoo have only been paying staff between £3-£4 an hour which is below the required minimum wage.

These latest findings come at a time when Boohoo themselves are carrying out their own investigations about their supply chains which is lead by Alison Levitt QC.

This has been a turbulent few months for Boohoo who in July were accused in a Sunday Times report that alleged workers at a factory in Leicester used by Boohoo to purchase garments were paying their employees less than £3.50 an hour.

This in turn saw the retailer loose over €1.8 billion euro from their share price within a 2 day period. However, this company was only a third party supplier and not a direct company owned by the Manchester fashion group.

On learning the news, Boohoo immediately severed ties with the supplier because they had breached their own terms and conditions of contract with the company.

According to The Guardian , Boohoo have yet to see the reports carried out by independent auditors Boohoo have admitted their own audit has raised its own concerns about their supply chain..

The British newspaper (The Guardian) named a number of suppliers with Boohoo responding saying their own investigations have highlighted similar issues. Boohoo preferred to allow the factories mentioned to demonstrable they have made significant improvement to protect the jobs of those employed. If this was not the case Boohoo said it would not hesitate to terminate their contracts.

Boohoo who manufacture approximately 40% of their own clothing in the UK are due to open their own state of the art manufacturing facility in Leicester next month.

This will reduce any further dependency on third party suppliers and ensure that their workers are paid properly. Boohoo have already apologised for using supply chains who don’t respect or treat their workers properly. The company is fully committed to ensuring all workers are treated and paid fairly for their work.

Damaging report puts Boohoo under spotlight again

 

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