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

Major milestones reached in build of Pleasure Beach Resort’s new ride Aviktas ride taking shape

Major milestones reached in build of Pleasure Beach Resort’s new ride

28 Nov 2025

2

Airframe Designs to play key role in world water speed record attempt ames Hodgkiss Jerrod Hartley And Chris Fleet Of Airframe Designs In The Longbow Workshop

Airframe Designs to play key role in world water speed record attempt

27 Nov 2025

3

Lancashire businesses react to Autumn Budget announcement Roger Philips

Lancashire businesses react to Autumn Budget announcement

26 Nov 2025

4

Reeves delivers £26bn tax rise Budget UK Parliament Budget photo

Reeves delivers £26bn tax rise Budget

26 Nov 2025

5

Seven Lancashire towns on list of target locations for new M&S Food stores M&S Food Stores

Seven Lancashire towns on list of target locations for new M&S Food stores

26 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 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

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

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

Navigating making tax digital for Income Tax
mtd event LinkedIn.jpg.jpg
LBV Hub Seminars
03 Dec 2025 - 03 Dec 2025

Navigating making tax digital for Income Tax

Junction 4 Skatepark , Darwen, BB3 0AJ

08:00 - 10:30

Chamber Breakfast Networking – December
Logo.jpg.jpg
LBV Hub Networking
04 Dec 2025 - 04 Dec 2025

Chamber Breakfast Networking – December

The Longlands Hotel, Carnforth, LA6 1JH

08:00 - 10:00

The Business Network Central & East Lancashire
LBV Header (27).png.png
LBV Hub Networking
04 Dec 2025 - 04 Dec 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:15 - 14:30

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