Boohoo re-hires supplier previously engaged in modern slavery
Boohoo is back in the firing line after reviving ties with a controversial manufacturer, which was once axed after the online retailer’s modern slavery scandal.
Leicester-based clothing manufacturer GN Euro is back selling womenswear to the online retailer despite cutting ties back in 2021, according to the Telegraph.
The manufacturer was one of 400 suppliers that were struck off after the allegations of modern slavery wiped more than £1 billion from the company’s value.
The scandal first emerged in 2020 after an undercover reporter for The Sunday Times visited a factory where staff were being paid less than minimum wage. These claims were later confirmed.
GN Euro had previously supplied Boohoo from its UK factory. However, it has since set up shop in Morocco under the name Euro Touch, from where it is once again doing business with the retailer.
Boohoo insisted that all the goods it now sources from GN Euro come from its factory in Tangier. Whilst there is no suggestion that it is not complying with Boohoo’s improved ethical standards, it has raised questions as to why Boohoo is re-engaging with axed suppliers.
A Boohoo spokesman said: “Boohoo is open and transparent about its entire supply base, with all our suppliers listed and regularly updated on the company’s website. We do not work with suppliers which cannot adhere to our highest standards.
“We only on-board a supplier or factory that goes through our strict onboarding process and due diligence checks, no exceptions. Every supplier signs our code of conduct, has a valid third-party social compliance audit and is visited regularly by our ethical teams on the ground for an audit.”
This comes to light as Boohoo is back in the headlines. In recent months, a battle has brewed between Frasers and Boohoo. Frasers, which owns a 27% stake in the retailer, has accused it of “long-term mismanagement” causing “value destruction”. Boohoo responded by saying Frasers’ criticisms were “inaccurate and unfair”.
After Frasers’ Founder Mike Ashley’s demands to become CEO were rejected, the company is campaigning for board influence at Boohoo. It has even set up a website “Boohoo deserves better” as it steps up its bid for a boardroom coup.
