Over the last 3 months, Boohoo Group Plc has been embroiled in controversy over allegations of getting its clothes made in non-compliant factories in Leicester.
The British e-commerce retailer, as a move to combat the crisis, has suspended all its business activities with the some of its Leicester-based suppliers.
Also Read: UK’s largest apparel hub accused of flouting compliance; Boohoo in spotlight for wrong reasons
Guardian, in its latest report, said that over a dozen of Boohoo’s suppliers may still be paying less than minimum wages. It also said that around 18 of them could not even prove themselves to be compliant.
Reportedly, 8 of these 18 have denied all the allegations.
Boohoo too has been investigating the matter ever since the issue came into spotlight back in June 2020.
And as per its investigation, there are unspecified number of factories in Leicester, where less than minimum wages are paid and consequently the retailer has suspended all business relations with them.
Ever since the apparel retailer, which owns PrettyLittleThing and Nasty Gal, announced the decision, its shares slumped by 17 per cent.
In an another effort to handle the issue, Boohoo said that it will be sharing its findings with organisations like Slave Free Alliance to ensure that all the workers are treated fairly and paid adequately.
Only last week, Home Secretary Priti Patel had urged the retailer to take responsibility to safeguard all its workers.
Also Read: Home Secretary urges Boohoo to protect its suppliers
