Boohoo launches immediate independent review of supply chain
Boohoo has launched an independent review of its UK supply chain following the allegations of low pay and unsafe conditions at suppliers’ factories.
Next, Asos and Zalando all stopped selling Boohoo clothes on their websites after the allegations emerged during the Covid-19 outbreak in Leicester.
In a statement this morning, Boohoo said: “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. We want to ensure that the actions of a few do not continue to undermine the excellent work of many suppliers in the area, who succeed in providing good jobs and good working conditions.”
The review will be led by Alison Levitt QC and will focus on supplier compliance with minimum wage regulations, compliance with Covid-19 regulations, working hours and record keeping, and right to work documentation and contracts of employment.
The company has also pledged to invest £10 million to help with work to eradicate supply chain malpractice and will be bringing forward its independent third party supply chain review with ethical audit and compliance specialists Verisio and Bureau Veritas.
In addition, Boohoo said it would welcome the opportunity to work with the Home Secretary and the local authority on any future investigations to help eliminate any instances of labour malpractice in Leicester.
Boohoo said its own investigation did not find any evidence of suppliers paying workers £3.50 per hour as highlighted in some press reports. However, it did find evidence of non-compliance with Boohoo’s code of conduct and the company has now terminated its relationships with the two suppliers involved.
John Lyttle, Boohoo chief executive, added: “We wish to reiterate how seriously we are taking these matters and we will not hesitate to terminate any relationships where non-compliance with our code of conduct is found. Our commitment to an incremental £10 million of investment demonstrates our resolve to enforce the highest standards of ethics, compliance and transparency for the benefit of all garment workers. We look forward to regularly updating our stakeholders as we move through this process.”
