Online fashion retailer boohoo is launching an independent review of its UK supply chain after allegations were made that some factories in Leicester that are associated with the brand pay workers below minimum wage and failed to protect them from the coronavirus outbreak.
The investigation will examine the brand's suppliers' compliance with regulations and will be led by Alison Levitt QC, a senior lawyer who has worked within White Collar Crime otherwise known as business crime.
The firm has also vowed to make an initial £10 million investment to 'eradicate supply chain malpractice'.
According to reports, boohoo wants to ensure that the 'actions of a few' do not continue to undermine the 'excellent work of many suppliers in the area, who succeed in providing good jobs and good working conditions'.
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To support this further, the brand will also be accelerating its independent third party supply chain review with ethical audit and compliance specialists, Verisio and Bureau Veritas.
Boohoo goes on to say: "Our investigation to date has not found evidence of suppliers paying workers £3.50 per hour. However we have found other evidence of non-compliance with our Code of Conduct and the Group has taken the decision to immediately terminate its relationship with both suppliers."
The firm's CEO, John Lyttle, said in a statement: "As a board we are deeply shocked by the recent allegations about the Leicester garment industry.
"We wish to reiterate how seriously we are taking these matters and we will not hesitate to terminate any relationships where non-compliance with our Code of Conduct is found.
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"Our commitment to an incremental £10 million of investment demonstrates our resolve to enforce the highest standards of ethics, compliance and transparency for the benefit of all garment workers.
"We look forward to regularly updating our stakeholders as we move through this process."
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