An independent review launched by Boohoo in July has “has identified many failings in the Leicester supply chain and recommended improvements to boohoo's related corporate governance, compliance and monitoring processes”. The review, led by Alison Levitt QC, followed a media report of poor working conditions in the company’s UK supply chain.
In July, an undercover investigation by a British newspaper alleged some of the Leicester factories supplying clothing to Boohoo were paying workers just £3.50 per hour and forcing some to work while sick. Boohoo denied claims of illegal wages.An independent review launched by Boohoo in July has “has identified many failings in the Leicester supply chain and recommended improvements to boohoo's related corporate governance, compliance and monitoring processes”. The review, led by Alison Levitt QC, followed a media report of poor working conditions in the company's UK supply chain.#
The company, whose portfolio includes brands Pretty Little Thing and Nasty Gal, said the review found that from “(at the very latest) December 2019, senior Boohoo directors knew for a fact that there were very serious issues about the treatment of factory workers in Leicester” and “whilst it put in place a programme intended to remedy this, it did not move quickly enough.”
It also said “Boohoo ought to have appreciated the serious risks created by ‘lockdown’ in relation to potential exploitation of the workforce of the Leicester factories”.
However, Levitt was satisfied that the company “did not deliberately allow poor conditions and low pay to exist within its supply chain, it did not intentionally profit from them and its business model is not founded on exploiting workers in Leicester”.
The review found “ample evidence that the steps which Boohoo is now taking in relation to remedying problems in its Leicester supply chain had been implemented nearly a year ago” and were not “just a reaction to the negative publicity in July and August 2020”.
The company has set out six steps to enhance its supplier audit and compliance procedures going forward, one of which being the bolstering of its corporate governance through the appointment of new independent directors, and the launch of a supply chain compliance committee.
Fibre2Fashion News Desk (DS)
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