Boohoo launches supply chain investigation

By Tim Aldred

09 Jul 2020

Online fashion retailer boohoo is to conduct an independent investigation of its supply chain after claims - which the company disputes - that some of its garments were produced in UK 'sweatshops'.

The Sunday Times newspaper published an undercover report describing 'sweatshop' conditions and £3.50 per hour pay at a factory in Leicester, which is also thought to have been a leading cause of the city's spike in coronavirus cases.

The article focused on the Jaswal Fashions factory which it said produced garments for boohoo and its Nasty Gal brand. Home secretary Priti Patel described the allegations as "truly appalling" and instructed the National Crime Agency to investigate.

In the wake of the allegations the share price of boohoo fell by more than a quarter, wiping more than £1bn off the value of the company.

However boohoo, which operates a major distribution hub in Burnley, said the clothes in the newspaper report were manufactured overseas, and that Jaswal Fashions is not a supplier.

A company statement said: "The garments featured were not actually manufactured in Leicester, but in Morocco. Post production, the garments were shipped back to the UK by the supplier to be repackaged into compliant boxes for delivery to the group’s international distribution centre in Burnley.

"This was the process that was filmed at a premises formerly operated by Jaswal Fashions Limited. Jaswal Fashions Limited, contrary to the media report, is not and has never been a supplier for the group, and does not operate in the unit stated. "Investigations over the last 72 hours have highlighted that the order fromNasty Gal was placed with Revolution Clothing Co Limited, who then instructed Morefray Limited to manufacture in Morocco and repackage the garments on their behalf in Leicester.

"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."

Boohoo said it would work with the Home Office in its investigations, saying: "We take extremely seriously all allegations of malpractice, poor working conditions, and underpayment of workers. The group will not tolerate any incidence of non-compliance with its Code of Conduct or any mistreatment of workers, and will not hesitate to terminate relationships with any supplier who does not comply."

The company will also undertake its own independent investigation, saying: "The group has launched an independent review of its UK supply chain. The objective of the review is to identify areas of risk and non-compliance, take action to strengthen future compliance, and to provide stakeholders with comfort that similar allegations will not recur in the future.The review will be led by Alison Levitt QC with boohoo board representation from Brian Small, the group’s deputy chairman and senior independent director.

"boohoo supports UK manufacturing and the British fashion industry. boohoo does not own or operate any manufacturing facilities. Producing garments in the UK does not bring a cost advantage for the group. We produce garments in the UK because of its proximity to our international distribution centres, giving the group additional flexibility to react to the latest trends for our customers. The group is wholly committed to continuing to have garments manufactured in the UK and we will develop initiatives to further support our suppliers."

  • For further Lancashire business news, advice and analysis subscribe to Lancashire Business View or join the LBV Hub from just £2.50 per month. Click here to subscribe now.

Enjoyed this? Read more from Tim Aldred

Latest news

1

MHA announce interim revenues up 13 per cent Rakesh Shaunak MHA

MHA announce interim revenues up 13 per cent

20 Nov 2025

2

Totally Wicked Group announce new fulfilment and distribution centre The Blackburn unit sold to Totally Wicked Group

Totally Wicked Group announce new fulfilment and distribution centre

19 Nov 2025

3

Lancaster University to create £2m nuclear facility control room simulator The new simulator will sit alongside the University's Data Immersion Suite, where these Lancaster students are pictured

Lancaster University to create £2m nuclear facility control room simulator

19 Nov 2025

4

BAE joins bid to deliver Red Arrows replacement T 7 Air

BAE joins bid to deliver Red Arrows replacement

19 Nov 2025

5

Ainsworth Jewellers celebrates 155-year milestone with anniversary weekend Jayant Raniga from PureJewels, Helen Dimmick and Phil Ainsworth, both from Ainsworth Jewellers

Ainsworth Jewellers celebrates 155-year milestone with anniversary weekend

18 Nov 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

Blackburn & Darwen Youth Zone Quiz
Thursday 20th November.png.png
LBV Hub Fundraisers
20 Nov 2025 - 20 Nov 2025

Blackburn & Darwen Youth Zone Quiz

Accrington Stanley Football Club, Accrington, BB5 5BX

17:00 - 20:00

The path to profit with consistency, quality and speed in your business
icz bburn coll.jpeg.jpg
LBV Hub Seminars
21 Nov 2025 - 21 Nov 2025

The path to profit with consistency, quality and speed in your business

Industry Collaboration Zone, Bolton College, Feilden Street, Blackburn, BB2 1LH

09:30 - 12:00

Preston Freelancer Meet-Up: November
NovFreelancer version 2 .png.png
LBV Hub Networking
26 Nov 2025 - 26 Nov 2025

Preston Freelancer Meet-Up: November

Society1 Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Lancashire post Budget analysis finance leaders events
MHA-BTI Logo_black (002).jpg.jpg
LBV Hub Networking
27 Nov 2025 - 27 Dec 2025

Lancashire post Budget analysis finance leaders events

Farington Lodge Hotel, Stanifield Lane, Farington, Preston, PR25 4QR

08:00 - 10:00

The PM+M Autumn Budget seminar - East Lancashire
Autumn Budget event East Lancashire
LBV Hub Seminars
27 Nov 2025 - 27 Nov 2025

The PM+M Autumn Budget seminar - East Lancashire

Crow Wood Hotel, Burnley, BB12 0RT

08:00 - 10:30

Lancashire Business Day 2025
241122lbvlancashiredaylhp0647web
Networking
27 Nov 2025

Lancashire Business Day 2025

Burnley FC , Burnley, BB10 4BX

12:00 - 17:00

Lancashire Construction Connections
LLC Logo Main.jpg.jpg
LBV Hub Networking
27 Nov 2025 - 27 Nov 2025

Lancashire Construction Connections

Blues Bar, Ewood Park, Blackburn, BB2 4JF

14:00 - 16:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin