Boohoo has seen almost £800 million wiped off its market value this week following news that its auditor plans to resign.
The fast fashion retailer saw its share prices dive nearly 20 per cent on Monday after a report from the Financial Times revealed PwC, which has been Boohoo’s auditor since 2014, was resigning.
Since Monday’s initial dive, Boohoo’s shares have failed to recover, dropping from 316.4p per share on Friday to just 258.8p per share, its lowest point since April.
This has encouraged its executives to buy back hundreds of thousands of shares in a bid to boost its share price.
READ MORE: PwC resigns as Boohoo auditor
Co-founder and joint chief executive Mahmud Kamani purchased 300,000 shares yesterday for £729,000, while its chief financial officer Neil Catto’s wife bought 5825 for £15,000.
Brian Small, the company’s deputy chairman, also bought back 10,000 shares for £25,000.
Boohoo’s reputation has been battered by reports of malpractice within its supply chain since the summer, when an investigation accused the retailer of paying workers as little as £3.50 an hour.
Investors’ confidence was again rocked last week after one of Boohoo’s suppliers was found to be involved with money laundering and VAT fraud.
Despite these damning accusations Boohoo’s share price has remained largely stable over 2020, however PwC’s departure has marked a significant loss in confidence from investors.