Boohoo has hired a new ‘responsible sourcing director’ as its largest shareholders push for significant reform to its operating practices.
The fast fashion retailer has created the new role in a bid to ease investor concerns and demonstrate that it is actively implementing changes across it supply chain network.
Andrew Reaney, Primark’s former product operations director, is expected to be the first in a string of hires who will be tasked with pushing through an “agenda for change” at Boohoo.
Another “highly experienced and respected individual” is expected to be hired in the coming weeks to oversee this change, alongside two new non-executive directors to handle environmental and social governance issues.
It comes just days after Shadow minister Liz Kendall wrote to Boohoo’s shareholders calling on them to demand a change in leadership that “Leicester desperately needs”.
A second letter from activist group ShareAction’s Martin Buttle was also sent to 31 major investors, who represent a collective 29 per cent share of Boohoo, calling on them to demand change in order to protect the future of their investments.
The former saw shareholders demand the removal of Boohoo’s chief executive John Lyttle and its chairman Mahmud Kamani.
This follows the publication of a damning independent investigation into Boohoo’s supply chain conducted by Alison Levitt QC which found 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 Kamani as “a cause for concern”, adding that she was “surprised by the degree of difficulty” in attaining documents she demanded.