Boohoo has rekindled its business relationship with a supplier it previously cut ties with, resulting in governance scrutiny.
- The supplier, previously known for poor conditions, now operates under a new name in Morocco.
- Boohoo had initially terminated contracts with over 400 suppliers due to low pay and poor working conditions.
- Audits revealed significant underpayment issues in factories linked to Boohoo from 2017 to 2020.
- All current goods sourced by Boohoo from this supplier are now from its Moroccan site.
Boohoo, the fast fashion giant, has decided to reinstate its business dealings with a supplier that had been previously disengaged due to serious allegations concerning working conditions. This decision has triggered criticism regarding the company’s governance, as reported by The Telegraph. In 2021, Boohoo had severed ties with more than 400 suppliers, driven by allegations that depicted poor working conditions and remarkably low wages within its factories.
The supplier in question, formerly operating under a different name, has established a new site in Morocco and is now trading as Euro Touch. Boohoo has confirmed that any goods currently sourced from this supplier originate entirely from this Moroccan facility located in Tangier. This move comes after public attention to Boohoo’s supply chain practices intensified, particularly following reports that dating back to 2020, revealed the prevalence of minimum wage violations.
Reports from third-party auditors in 2020 highlighted that 18 factories associated with Boohoo were involved in paying workers below the minimum wage. These audits, along with further investigations by The Guardian, indicated that between 2017 and 2020, some factory workers in Boohoo’s supply chain were receiving wages as low as £3-£4 per hour. Such revelations played a crucial role in Boohoo’s decision to overhaul its supplier network initially.
Now, as Boohoo resumes its relationship with the supplier, albeit under a new name and operational model, it confronts renewed scrutiny regarding its supply chain ethics. The re-engagement with this supplier occurs amidst ongoing concerns about ethical governance and the upholding of appropriate working conditions. Drapers has sought comments from Boohoo regarding this development, underscoring the public interest in corporate responsibility and ethical practices within the fashion industry.
Boohoo’s decision to re-engage with a previously controversial supplier raises important questions about its commitment to ethical governance.
