Leicester’s garment makers have said they are in crisis as a growing number of fast-fashion brands are forcing through discounts, making last-minute cancellations and imposing financial penalties for what suppliers claim are tiny errors.

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The non-profit cooperative Labour Behind the Label estimated there were 1,000 factories in Leicester in 2020 and that this number had now halved.

Factories say their profits are being squeezed by punitive practices, last-minute cancellations and unexpected changes to orders as retailers attempt to rein in costs amid disappointing sales.

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Labour Behind the Label claimed suppliers were often treated with “disdain and disrespect”. Suppliers have told the group about demands by Boohoo Group for discounts of between 10% and 20% on the agreed price for delivered and undelivered orders.

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The squeeze on suppliers is affecting garment workers in the region, particularly women. Kaenat Issufo, who works with Labour Behind the Label, said many were struggling to find jobs as factories shut. “A lot of women have said this to me, and they don’t travel elsewhere for work because often there is a language barrier. They also feel safer working within the community.

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