Quiz suspends supplier after Leicester factory exploitation claims
Fashion brand Quiz has suspended one of its suppliers after reports that the supplier was failing to pay workers at a factory in Leicester the minimum wage.
Over the weekend, an investigation by the Times found that the supplier had offered employees just £3 an hour to make clothes for the brand.
The minimum wage for people over 25 years old in £8.72 per hour.
Shares in the firm fell 5.6 per cent this morning after markets opened.
In a statement this morning, Quiz said that it was investigating the allegations and had suspended the supplier in question.
It said: “From our initial review, we believe that one of Quiz’s suppliers based in Leicester has used a sub-contractor in direct contravention of a previous instruction from Quiz”.
The firm added that it would conduct a fuller review of its supplier auditing processes to ensure that they complied with its ethical code of practice.
Chief executive Tarak Ramzan said: “We are extremely concerned and disappointed to be informed of the alleged breach of National Living Wage requirements in a factory making Quiz products.
“The alleged breaches to both the law and Quiz’s ethical code of practice are totally unacceptable.
“We are thoroughly investigating this incident and will also conduct a fuller review of our supplier auditing processes to ensure that they are robust. We will update our stakeholders in due course.”
Quiz is the latest fashion brand to be accused of paying staff illegal wages. Last week it emerged that workers at fast fashion brand Boohoo’s Leicester factory had been offered as little as £3.50 an hour.
The scandal knocked off over a quarter of Boohoo’s share price and saw major investors such as Standard Life Aberdeen pull its stake in the company.