£500m wiped off Boohoo’s market value following damning report

Boohoo has seen its share prices divebomb by nearly 11 per cent following an undercover exposé which accused it of perpetuating modern slavery.

Boohoo Group, which includes popular online fashion brands like PrettyLittleThing, Nasty Gal, Karen Millen, Coast, Oasis and Warehouse, has seen £500 million wiped off of its market value after the damning “Labour Behind the Label” report was published over the weekend.

The report accused the group of paying garment workers in a factory in Leicester, where Boohoo sources around 60 per cent of its production, between £3.50 and £4 an hour.

Aside from paying workers around half the legal National Minimum Wage, the report also accused the factory run by Jaswal Fashions of failing to provide adequate worker protection against COVID-19.

According to the expose the factory remained open during lockdown largely at full capacity and with little to no social distancing measures in place.

READ MORE: Boohoo accused of slavery practices in Leicester factory

It is also accused of disregarding positive COVID-19 cases and engaging in furlough fraud and has been implicated as a source of the recent outbreak in Leicester which has forced the area back into lockdown.

Boohoo has responded to the report stating that Jaswal Fashion is not a registered supplier despite them being found to be making garments for its Nasty Gal brand.

“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.

“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 Jaswal’s former premises and we are currently trying to establish the identity of this company.

“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.”

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1 Comment. Leave new

  • Avatar
    Adrian Hinson
    July 6, 2020 12:58 pm

    Why does it take a report in a newspaper article to highlight this issue when the local authorities should be ensuring this is not allowed to take place and how many more factories are there operating on a similar basis?
    Is there no Health and Safety inspection in the area?

    Reply

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