Boohoo, the UK e-tailer and fast fashion brand, has commissioned an independent review of its domestic supply chain and promised to spend £10 million dealing with malpractice after major retailers, including Amazon, Next and Asos stopped stocking its clothes.
The review comes as Boohoo deals with allegations of using suppliers in Leicester, England, that pay as little as £3.50 (€3.9-$4.4) an hour and failed to protect workers from the coronavirus, forcing them to work during a local lockdown.
On Tuesday, the boycott was joined by very.co.uk and German e-commerce giant Zalando, putting further pressure on the firm to act. The scandal has seen £1.5 billion (€1.7bn-$1.9bn) wiped from the company’s value on the stock exchange.
“Selling partners are required to follow all applicable laws, regulations, and Amazon policies when selling in our store. We will be suspending the sale of the brands in question,” Amazon said in a statement.
Boohoo said it is “shocked and appalled” at the claims and instructed Alison Levitt, a barrister specialising in business crime, to lead the review, looking at compliance with minimum wage and Covid-19 rules and employment contracts.
In a statement, Boohoo said some details in the weekend’s media reports were inaccurate and it has found no proof of suppliers paying workers £3.50 an hour - compared with the legal rate of £8.72 - but that it has found evidence of other non-compliance with its code of conduct and stopped using two suppliers.
Boohoo, which owns other fashion brands including Nasty Gal and PrettyLittleThing, added it is committed to doing everything in its power to ”rebuild the reputation of the textile manufacturing industry in Leicester.”