boohoo听says conditions at the听Leicester听factory of one of its suppliers are 鈥渢otally unacceptable鈥� and听vowed to听take action听following听a damning听Sunday Times investigation.听
Shares in the听濒颈蝉迟别诲听fast fashion retailer dropped more than听nine per cent on Monday morning听after the experiences of an undercover reporter were published at the weekend.
The听reporter worked for two days听at a factory displaying the sign听Jaswal Fashions and was told听to expect a wage of 拢3.50 an hour, despite the minimum wage听for those aged 25 and over being 拢8.72.听
Video footage showed him packing garments destined to be sold under the听Nasty Gal听label, owned by Manchester-headquartered boohoo.
The factory foreman warned: 鈥淭hese mother****ers听know how to exploit people like us. They make profits like hell and pay us in peanuts.鈥�听
Another member of staff听warned him to keep his job secret, adding: 鈥淵ou are working illegally, so do not discuss or talk anything with people about working here.鈥�听
The factory was also听working听last week despite a听full听localised听COVID-19听lockdown,听without additional hygiene or social distancing measures in place.听
Garment factories in Leicester are thought to be a leading cause of听a recent听spike in infections in听the听area.听An estimated听three-quarters of clothing听made in Leicester听are ultimately sold under boohoo听brands.听
boohoo听released a statement to the London Stock听Exchange on Monday morning.听
鈥�We are grateful to The Sunday Times for highlighting the conditions at Jaswal Fashions, which, if as observed and reported by the undercover reporter, are totally unacceptable and fall woefully short of any standards acceptable in any workplace,鈥� it read.听听
鈥�Our early investigations have revealed that Jaswal Fashions is not a declared supplier and is also no longer trading as a garment manufacturer. It therefore appears that a different company is using听Jaswal’s听former premises and we are currently trying to establish the identity of this company.听听
鈥�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.鈥�听
It continued:听鈥渂oohoo remains committed to supporting UK manufacturing and is determined to drive up standards where this is required.听听
鈥淲here help and support for improvement is required, we have and will continue to provide it, to ensure that everyone working to produce clothing in our supply chain is properly remunerated, fairly treated and safe at work.听听听
鈥淲e will not hesitate to immediately terminate relationships with any supplier who is found not to be acting within both the letter and spirit of our supplier code of conduct. This includes very clear expectations on transparency about second tier suppliers.鈥�听
Last month boohoo group reported a听45% increase in group revenue to 拢367.8m听for the three months to May 31st and听also听acquired the intellectual property of women’s fashion retailers Oasis and Warehouse, both of which went into administration in April.
Meanwhile investors have revolted against听a planned remuneration package听for its leadership team听which would see听them听paid听拢150 million听if its听valuation hits听拢6 billion.听听
It currently stands at 拢4.9 billion.听