MANCHESTER – Online fashion retailer Boohoo has shared terms of references of its review into its Leicester supply chain as well as announcing that the findings its investigation will be ready by mid-September – four months earlier than initially stated. The independent review is being led by Alison Levitt QC, former head of law firm Mishcon de Reya’s white-collar crime unit.
Boohoo’s share price has fallen by a third in the wake of a Sunday Times article and Labour Behind the Labour report which both exposed evidence of modern slavery and other labour rights transgressions in Boohoo’s supply chain.
Bringing forward the findings of the investigation is likely in response to pressure from investors which will be keen to draw a line under the issue. This would – in theory – shore up Boohoo’s share price.
Brian Small, Boohoo deputy chairman and senior independent director, this week stated: “We are pleased to share the terms of reference for the upcoming independent review into our Leicester supply chain. We believe this demonstrates how seriously we, as a board, are treating the recent allegations into our supply chain.”
“The group is committed to delivering the highest standards of ethics, compliance and transparency,” he added.
Boohoo has now detailed what the focus of its independent investigation into working practices at its supplier in Leicester will be.
Boohoo, which also owns PrettyLittleThing, Nasty Gal and Miss Pap, said it plans to establish the following four points:
– To investigate the allegations made in relation to the Leicester supply chain and determine whether they are well-founded
– If they are, to consider the extent to which the Group monitored its supply chain in Leicester and had knowledge of the allegations
– To consider the Group’s compliance with the relevant law
– To make recommendations for the future in response to those findings
The report will be completed by September 15 and its findings will be published as part of Boohoo’s half year results at the end of the month.