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

Bellway to build 183 high quality new homes Royal Bowland Park street scene NEW.jpg.jpg

Bellway to build 183 high quality new homes

29 Oct 2025

2

University of Lancashire recognised for entrepreneurship and supporting business growth - Representatives from the University's Business School, local SMEs and the IOEE

University of Lancashire recognised for entrepreneurship and supporting business growth

29 Oct 2025

3

£8bn Typhoon order is great news for Lancashire BAE Typhoon ECRS Mk2 Radar

£8bn Typhoon order is great news for Lancashire

28 Oct 2025

4

Award-winning Lancashire wedding venue and hotel is sold The Mill at Conder Green

Award-winning Lancashire wedding venue and hotel is sold

28 Oct 2025

5

PM+M announces another 19 promotions across the firm PM+M promotions

PM+M announces another 19 promotions across the firm

27 Oct 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
November / December 2025 Magazine Launch Event
Holiday Inn Hotel
Networking
28 Oct 2025 - 18 Nov 2025

November / December 2025 Magazine Launch Event

Holiday Inn, Blackpool

16:46 - 16:45

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

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

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

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

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

Chamber Breakfast Networking – November
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
06 Nov 2025 - 06 Nov 2025

Chamber Breakfast Networking – November

Porsche Centre South Lakes, Carnforth, LA6 1FW

08:30 - 10:30

Lancashire Police business update with The Police and Crime Commissioner
Lancs-cham-logo.jpg.jpg
LBV Hub Roundtables
10 Nov 2025 - 10 Nov 2025

Lancashire Police business update with The Police and Crime Commissioner

Lancaster Castle, Lancaster, LA1 1YN

14:00 - 16:00

AI, Creativity, and what it means to be human
2.jpg.jpg
LBV Hub Networking
11 Nov 2025 - 11 Nov 2025

AI, Creativity, and what it means to be human

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:00

Beyond the Brand: Building trust through values and integrity
1.png.png
LBV Hub Networking
11 Nov 2025 - 11 Nov 2025

Beyond the Brand: Building trust through values and integrity

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:00

The Business Network Central and East Lancashire
LBV Hub Networking
13 Nov 2025 - 13 Nov 2025

The Business Network Central and East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

The AI Lab: E-commerce
Ai Lab ecommerce (1).png.png
LBV Hub Seminars
14 Nov 2025 - 14 Nov 2025

The AI Lab: E-commerce

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

09:00 - 11:30

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