Boohoo to invest £10m in improving workplaces as Next and Asos distance from brand

A UK fashion retailer is investing £10m in improving working practices as it loses major distributors.

Boohoo has been dropped by Next, Asos and Zalando in response to allegations of low pay and unsafe conditions at its factories.

The claims were made in a Sunday Times article, which said that workers at its Leicester factory were being paid £3.50 an hour and were not being offered protection from coronavirus.

Boohoo announced this morning that it is launching an independent review to investigate, and will be investing “an incremental £10m” to eradicate supply chain malpractice.

John Lyttle, group CEO, commented:“As a board we are deeply shocked by the recent allegations about the Leicester garment industry.

“We wish to reiterate how seriously we are taking these matters and we will not hesitate to terminate any relationships where non-compliance with our code of conduct is found.

“Our commitment to an incremental £10m of investment demonstrates our resolve to enforce the highest standards of ethics, compliance and transparency for the benefit of all garment workers.

“We look forward to regularly updating our stakeholders as we move through this process.”

On its decision to pull Boohoo products, a spokesperson for Next said: “Next concluded there is a case for Boohoo Group to answer.

“As a result, last week Next removed the Boohoo and Pretty Little Thing branded items it was selling previously, from all Next websites.

“Next is not prejudging the outcome of this process and no final decision has been made, however, while there is a case to answer, these labels will remain suspended from all Next websites.”