The first report into听the changing working practices of boohoo has been published by听Sir Brian Leveson PC听as the listed eCommerce giant posts a 40% jump in group revenue.听
Following an听independent review of boohoo’s UK supply chain听by听Alison Levitt QC late last year, the Manchester-headquartered group set out an 鈥楢genda for Change鈥� programme to improve corporate governance, purchasing practices听and听supply chain standards.听
The review was ordered听following a听Sunday Times investigation which听revealed poor conditions at a factory in Leicester听and led to several leading retailers dropping its clothes. The change programme听has听also pledged to听support听the听rights of听workers听in听the Midlands city.听
Leveson is part of an 鈥楢genda for Change鈥� committee听which听includes听senior members of boohoo and KPMG.听
The听retired judge鈥檚听report听found that听64 suppliers have been removed from the group’s UK supplier list, with further investigations ongoing, while alternative ethical suppliers are being identified.听
It said听progress is being made on the mapping and auditing of the听group’s tier one and tier two supply base, in the UK and internationally, led by teams from Bureau Veritas and听Verisio.听
Leveson听acknowledged听the pace with which boohoo is effecting change, while noting that recommendations remain work in progress.听
鈥淭he programme is underway and real听enthusiasm has been demonstrated by those at the centre of the A4C project along with听a determination to achieve real change,鈥� he wrote.听听
鈥�All that is to be commended,听but听it is clear that听there听is a long way to go. Working with buyers to ensure that there is an auditable process听of ensuring that a 鈥榝air trade鈥� approach has been adopted to purchasing negotiations has听to run alongside a thorough and complete compliance audit not only of all those with whom听boohoo contracts but also their sub-contractors.听
鈥�The challenges presented by all that has emerged cannot be solved by boohoo听alone听but听boohoo must be prepared to stand alongside all efforts to ensure that fair practices are听adopted by all those in its supply chain throughout the country.鈥�听
boohoo promised to appoint two independent non-executive directors following the Levitt review. It has only听secured one of these to date:听Trainline CFO听Shaun McCabe,听who听now听chairs听the audit听committee.听听
Mahmud Kamani, group executive chairman, commented:听“I’m immensely proud of the speed with which our team has worked to effect change during such a challenging period for the group, and it’s encouraging to see our progress acknowledged in the report.听听
鈥淚’d like to take this opportunity to thank our team for their exceptional hard work over the last few months, and to reinforce our commitment to being a leader for positive change in UK textiles manufacturing.听听
鈥淲e have lots to do still, but an exciting year lies ahead for boohoo and our multi-brand platform in 2021.”听
The group saw听strong revenue growth of 40% in the听four months听to听31st听December 2020, driven by 40% UK sales growth and听52%听in the听US.听
The period saw the听integration and re-launch of Oasis and Warehouse brands on听to听its听platform.听
boohoo said it is close to finalising an extension of听its听UK warehousing capacity, with a new site to open in April 2021, creating up to 1,000 jobs.听
CEO听John Lyttle听said:听“I’m delighted with the听group’s performance over the peak trading period. Our team worked exceptionally hard in 2020 as we navigated the many challenges, including the COVID-19 pandemic and the successful acquisition and integration of Oasis and Warehouse.听听
鈥�Growth has been strong across our multi-brand platform and we have continued to grow our market share across all geographies.鈥�听