Boohoo to open ‘model garment factory’ in Leicester
Boohoo, the fast fashion retailer facing allegations of poor working practices at its factory in Leicester, is setting up its own clothing manufacturing facility in the city.
The e-commerce giant purchased a former car showroom site in Leicester about six weeks ago to develop a model garment factory in a joint venture with a supplier.
The factory is expected to employ up to 250 people and have the capacity to produce about 50,000 garments a week.
Boohoo chief executive John Lyttle told the Guardian that the new factory “will have the latest capital equipment and promote the highest standards of health and safety throughout the facility”.
The retailer launched an independent investigation into its supply chain following allegations that workers at a factory in Leicester were paid as little as £3.50 an hour. The national minimum wage for workers aged over 25 is £8.72.
Boohoo said it had not found evidence of the £3.50 hourly payment, but confirmed that there had been non-compliance with its code of conduct and terminated its relationship with two suppliers.
The independent review will be led by Alison Levitt QC and will focus on supplier compliance with minimum wage and coronavirus regulations, working hours and record keeping, and right to work documentation and contracts of employment.
Boohoo will update on the status of the review in September and January before publishing a full sustainability report in spring next year.
MPs slammed Boohoo for failing to act on the issues in Leicester earlier.
Earlier this month the Environmental Audit Committee (EAC) wrote to Boohoo accusing it of being aware of issues in Leicester clothing factories at least two years ago.
Co-founder and then-chief executive Carol Kane appeared in front of the committee of MPs in 2018 over links Boohoo “may have to illegally low pay in Leicester garment factories”, the letter said.
EAC chairman Philip Dunne said: “It is incredible that over a year since the committee highlighted illegal working practices in its supply chain, Boohoo has publicly denied any knowledge of what has been happening for years.”