Boohoo’s chief executive John Lyttle is facing demands from MPs to step down after a damning investigation found problems to be “endemic” across the company.
Shadow minister Liz Kendall will today send a letter to Boohoo’s shareholders calling on them to demand a change in leadership that “Leicester desperately needs”, according to the Financial Times.
Kendall will tell shareholders including Baillie Gifford, Jupiter, Invesco and “Boohoo’s other shareholders” that a new chief executive and chair are needed to drive fundamental change at the fast fashion retailer.
“It would make a mockery of any claims to support responsible investing if the same executives who allowed these appalling failures to take place, despite repeated warnings over many years, were kept in place by the shareholders,” Kendall said.
The demands come after a bombshell investigation into 62 of Boohoo’s suppliers was published by Alison Levitt QC, finding various health and safety violations, cases of failed payment of wages, failures in recording of hours and identity verification and potential furlough fraud.
While Levitt ruled that Boohoo had not broken any laws, she highlighted the responses of executives including chairman Mahmud Kamani as “a cause for concern”, adding that she was “surprised by the degree of difficulty” in attaining documents she demanded.
This is the latest major public blow to Boohoo after the report was published, following reports last week that its co-founder Carol Kane was being accused of “misleading parliament”.