Online fashion giant boohoo tries to improve its image with forensic supply chain initiative
Online fashion giant boohoo has agreed to sign up for a forensic supply chain initiative as part of the company’s attempts to improve its image.
oohoo has come under fire in recent years after the company’s use of UK suppliers revealed that some staff were being paid as little as £ 3 an hour.
The decision to join Fast Forward, an industry-leading auditor with already membership including Asos and M&S, comes as Sir Brian Leveson released his latest review of the company.
Sir Brian, who heads an independent review of boohoo’s supply chain practices, said the company’s due diligence may now go beyond some of its rivals.
He added: “In my many discussions with (…) the directors and managers of boohoo, I remain encouraged by everyone’s determination to address the issues that were exposed last year and to promote and integrate a new one. way of working at the highest ethical standards. “
Three reports have now been released by the retired judge.
The bosses said they remain committed to releasing a list of global suppliers in September this year and continue to review their entire manufacturing supplier base.
Company co-founders Mahmud Kamani and Carol Kane said, “We are extremely proud of the incredible amount of change our teams have made as the group has made exceptional progress over the past 11 months in developing a solid, fair and transparent procurement. chain, which is recognized in Sir Brian’s latest report.
“As a group, we are on track to deliver on all of the commitments we made over the past year and we remain committed to setting the bar high, driving measurable and lasting change.”
Fast Forward was launched in 2014 and aims to uncover audit evasion and hidden exploitation, including forced labor.
It also assesses whether suppliers potentially violate labor laws and adhere to ethical labor standards.
The latest plans for boohoo come as the company revealed that reopening non-essential clothing stores has failed to slow sales of its online-only operation.
Sales in the three months to the end of May soared 32% to £ 486.1million, with the UK showing the strongest growth in its larger regions.
UK sales rose 50% to £ 274.6million, followed by the US, up 43% to £ 131.9million.
But there have been falls in Europe and other parts of the world, the company added.
The increase in total sales was in part due to the successful integration of the Dorothy Perkins, Wallis and Burton brands on its platform after purchasing them from Arcadia directors for £ 25.2million.
Boohoo has also launched a new online-only Debenhams store, purchasing the rights to the brand for £ 55million.
In both cases, all stores were closed, resulting in thousands of job losses.
Managing Director John Lyttle said: “I am delighted with our performance in the first quarter, especially since it was always difficult to produce high growth rates last year, when bottlenecks around the world generated a also high traffic to online retailers. “