Boohoo staff 'lying to drive down costs' despite promise to make clothes fairly
Boohoo has been accused of breaking promises to make its clothes fairly and ethically.
The BBC sent a reporter undercover for a new Panorama investigation and claims they saw staff under "constant pressure to drive prices lower and lower" at its Manchester HQ. It comes despite Boohoo launching its "Agenda for Change" programme three years ago, which promises to pay its suppliers a fair price following allegations of poor practices.
The BBC reporter, who worked in the dresses department between April and June this year, said a colleague told her to "go in low and if you're not getting anywhere then just say that you can get it cheaper elsewhere" when negotiating prices with suppliers. The Boohoo worker was then claimed to have told her: "I'm just lying. I just lie."
The investigation claims Boohoo put pressure on suppliers even after orders had been agreed - and sometimes even when they had been made and ready for delivery. The reporter claims they were told to put through a 5% cut on more than 400 orders in one day, despite terms having already been agreed.
Boohoo, which had 18 million customers and £1.7billion worth of sales last year, told the BBC it had experienced significant cost inflation over the past year. It claims it asked suppliers to put through discounts when costs started to come down.
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The BBC reporter also claims there was an average lead time - the time between Boohoo making an order and receiving it - of ten weeks in the dresses department. However, while she was there, a lead time of six weeks or under was reportedly imposed, with suppliers in China and India given a week longer.
BBC also claims staff at a factory called MM Leicester Clothing Ltd were told they may need to work late into the night with just hours' notice. The investigation claims to have witnessed a supervisor tell staff: "No-one is leaving at eight, or 10, or later." MM Leicester told the BBC its normal hours are 08:00 to 18:00 and it never forces workers to stay late.
A spokesperson for Bohoo told The Mirror: “Boohoo has not shied away from dealing with the problems of the past and we have invested significant time, effort and resource into driving positive change across every aspect of our business and supply chain. Alison Levitt KC conducted an independent review of our supply chain and made a number of recommendations to improve working conditions and transparency.
“With oversight from Sir Brian Leveson PC, we have implemented every one of these recommendations including improving corporate governance, strengthening the ethical and compliance obligations on those wishing to supply Boohoo, regularly publishing our full list of approved global manufacturers, responsibly exiting from relationships with suppliers where standards are found to have fallen short, supplementing audit processes with regular unannounced checks and more. The action we’ve taken has already delivered significant change and we will continue to deliver on the commitments we’ve made.”
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