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08 Jul 2020 | 07:38

Boohoo orders independent supply-chain review

(Sharecast News) - Boohoo has commissioned an independent review of its UK supply chain and pledged to spend £10m to clean up malpractice after Next and other customers stopped stocking its clothes. The company said it was "shocked and appalled" at allegations that factories in Leicester that were in Boohoo's supply chain paid workers less than the minimum wage and forced them to work during Covid-19 lockdown.

Boohoo has instructed Alison Levitt QC, a barrister specialising in business crime, to lead the review, which will examine compliance with the minimum wage and Covid-19 rules, working hours, record keeping and right to work documents and employment contracts. Boohoo's deputy chairman, Brian Small, will represent the company.

Next, Amazon, Asos and other customers have withdrawn Boohoo products from their websites over the allegations about treatment of workers in Boohoo's supply chain in Leicester, the heart of the UK's garment-making industry.

"As a board, we are shocked and appalled by the recent allegations that have been made and we are committed to doing everything in our power to rebuild the reputation of the textile manufacturing industry in Leicester," Boohoo said.

Boohoo said some of the details of weekend media reports were inaccurate and that it had found no evidence of suppliers paying workers £3.50 an hour but that it had found evidence of other non-compliance with its code of conduct and had stopped using two suppliers.
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