6th Jul 2020 10:42
(Alliance News) - Boohoo Group PLC on Monday distanced itself from a purported supplier after an undercover reporter from the Sunday Times observed working practices at a Leicester factory which violated government-required social distancing measures and minimum wage requirements.
The affordable fashion retailer responded to findings by saying that its early investigations revealed that Jaswal Fashions is not a declared supplier and is also no longer trading as a garment manufacturer.
It stated it believes a different company is using Jaswal's former premises, adding that its currently trying to establish the identity of this company.
"Boohoo remains committed to supporting UK manufacturing and is determined to drive up standards where this is required. We are taking immediate action to thoroughly investigate how our garments were in their hands, will ensure that our suppliers immediately cease working with this company, and we will urgently review our relationship with any suppliers who have sub-contracted work to the manufacturer in question," the company said.
Boohoo added that it recently implemented actions to further strengthen its teams, procedures and processes. Measures commencing earlier this year a review of all tier one and tier two UK suppliers which includes a full audit of all of its suppliers' manufacturing facilities, and a requirement for UK suppliers to provide full disclosure of their own manufacturing locations and details of any manufacturers where work is sub-contracted.
The stock was trading 10% lower at 347.35 pence each on Monday morning in London but 16% higher than at the start of the year.
By Ife Taiwo; [email protected].
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Boohoo