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14 Jul 2020

Boohoo: Investors drop fast fashion brand over allegations of labour rights abuses in supply chains

In July 2020 a report from Labour Behind the Label revealed widespread labour abuse in Leicester’s garment sector, including wage theft, poor working conditions and a high Covid-19 risk. The report stated that Boohoo orders account for at least 75% of work in the city’s garment manufacturing sector and called on the company to provide greater transparency on its supply chains so the practices of its suppliers could be scrutinised. Labour Behind the Labour was joined by other civil society organisations in calling on Boohoo to take accountability.

Following the allegations, Boohoo announced an independent review into working conditions in its UK supply chains. Boohoo claimed the initial findings of the review did not reveal garment workers being paid below the minimum wage.

Investors, dissatisfied with Boohoo’s review, have dropped the fast fashion Brand. Aberdeen Standard Investments sold the majority of its shares in the fast fashion retailer, contributing to the £1bn fall in Boohoo’s market value in a single week. The investor’s decision followed a move by retailers Next, Asos, Amazon, Very and Zalando to remove Boohoo clothing from sale.