28th Jul 2020 11:03
(Alliance News) - Boohoo Group PLC on Tuesday outlined the terms of an investigation into its supply chain, as the fast-fashion retailer grapples with claims it sold clothes made in factories where staff were paid less than the minimum wage.
The stock was up 5.1% at 266.66 pence each in London on Tuesday morning. However, the stock ended July 3, the last trading day before allegations from The Sunday Times were published, at 387.50p.
The Sunday Times newspaper reported allegations that workers in Leicester's Jaswal Fashions Ltd factory making clothes for Boohoo brand Nasty Gal were being paid as little as GBP3.50 an hour and operating without social distancing measures in place.
Boohoo earlier in July distanced itself from Jaswal Fashions however and added that while it has seen "non-compliance" with its code of conduct, it has not seen evidence of its suppliers paying workers GBP3.50 per hour.
Alison Levitt, a lawyer, will head up a probe an independent probe "of our UK supply chain", Boohoo said earlier in July.
The investigation, Boohoo explained on Tuesday, will assess whether the allegations made are "well-founded".
And if they are, the probe will consider to what extent the company "monitored its supply chain in Leicester and had knowledge of the allegations". It will also consider whether Boohoo has complied with the law and will then make recommendations based on the probe's findings.
Boohoo Deputy Chair Brian Small said: "We are pleased to share the terms of reference for the upcoming independent review into our Leicester supply chain. We believe this demonstrates how seriously we, as a board, are treating the recent allegations into our supply chain. The group is committed to delivering the highest standards of ethics, compliance and transparency.
By Eric Cunha; [email protected]
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