Boohoo defends supply practises after BBC allegations

6th Nov 2023 16:30

(Sharecast News) - Online fashion retailer Boohoo responded to scrutiny over how it treats suppliers on Monday afternoon after a BBC investigation revealed allegations of staff pressuring suppliers to reduce prices, even after agreements had been reached.

"Like all businesses, we have experienced significant cost inflation over the last year, which we have absorbed in order to maintain affordable prices for customers," said a spokesperson for Boohoo in response to the BBC's allegations.

They added that, as the costs of raw materials, freight, and energy began to decrease, the company asked its suppliers to offer discounts ranging from 1% to 10%, intending to pass the savings on to customers.

"Boohoo has not shied away from dealing with the problems of the past and we have invested significant time, effort, and resources into driving positive change across every aspect of our business and supply chain," the company added.

The broadcaster's probe involved an undercover reporter working at Boohoo's Manchester head office in an administrative role for 10 weeks.

Boohoo previously faced issues in 2020 when an independent review uncovered major failings within its English supply chain following allegations of poor working conditions and low pay in factories in Leicester.

In response, the company initiated its 'Agenda for Change' programme to address the concerns.

At 1611 GMT, shares in Boohoo Group were up 1.55% at 33.39p.

Reporting by Josh White for Sharecast.com.