Online fashion giant has reportedly demanded that their Leicester-based suppliers bring all clothes-making work in-house, either buying out or cutting ties with sub-contractors causing concern among some about how they will pay to hire new workers and rent space.
Boohoo has reportedly given these suppliers a deadline of 5th March to stop using outside labour following recommendations of last year’s Alison Levitt QC report which investigated concerns about worker welfare during the pandemic.
The report, published in September, said Boohoo had "capitalised on the commercial opportunities offered by lockdown" but took no responsibility for the consequences for those making the clothes they sold. It further recommended that "within six months Boohoo should reduce its approved suppliers to a list which contains a manageable number of companies, ideally without reducing capacity" with "the goal of reducing and ultimately eliminating sub-contracting."
According to the BBC, the company said all of its suppliers in the city must "bring all finished goods manufacturing in-house".
In a statement to the BBC, the company said, "As we state in our letter to suppliers, the boohoo group is committed to growing our business in a more sustainable and transparent manner. Working with suppliers in a more strategic and sustainable way, is a key part of our partnership approach to improve transparency, efficiency and accountability," the company said in a statement to the BBC.
"One of the key recommendations from the Alison Levitt QC review was to consolidate our supply chain. Supporting suppliers to bring their CMT units in-house shortens our supply chain and is just one of the ways that we are helping them to build stronger more sustainable businesses that can thrive."
The company declined to comment on what help would be offered by Boohoo for suppliers to manage this change if they are struggling financially.
