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Boohoo cuts UK suppliers as part of clean-up efforts

02
Apr '21

Pic: Shutterstock

UK-based online fashion retailer Boohoo Group is cutting more than 400 companies from its supplier network following a critical report last year on labour practices at some of those businesses. It recently published a list of 78 approved manufacturers operating across 100 UK sites—a reduction from around 500 suppliers identified in an independent review of the business by UK lawyer Alison Levitt last year.

The action follows the termination of at least 64 factories that couldn’t meet new enhanced labour standards, the consolidation of some suppliers and the elimination of subcontracting.

Improving the transparency and control over the company’s supply chain was a key recommendation in Levitt’s report, which followed a minimum-wage and safety scandal at supplier factories in Leicester, England, last year, according to UK media reports.

In her review, Levitt found that Boohoo had prioritised profit and growth, and ignored ‘red flags’ about labour violations, but cleared the company of any direct involvement. The company’s management has since taken a number of steps to improve its processes and governance, notably appointing UK Judge Brian Leveson to supervise the company’s ‘Agenda for Change’ reform process.

Leveson, in his second progress report published recently, said Boohoo should be given credit for strengthening its sourcing and compliance team, improving training processes for buyers, and auditing most UK suppliers twice during the last eight months, including in the evenings and on weekends.

Fibre2Fashion News Desk (DS)

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