Leicester MP Liz Kendall has renewed calls for Boohoo’s chief executive and executive chair to step down from their positions.
This is the latest update in a modern slavery scandal surrounding the Manchester-based online fashion retailer, over working conditions in its British factory.
The MP for Leicester West said that working conditions within Boohoo’s supply chain were “one of the worst environmental, social and corporate governance (ESG) scandals in modern UK history”.
Boohoo’s share price fell during the summer following revelations that some staff at warehouses that supply the retailer were being paid as little as £3.50 per hour.
An independent review into boohoo’s product supply chain earlier this year, led by Alison Levitt QC, had identified “many failings in the Leicester supply chain and recommended improvements to boohoo’s related corporate governance, compliance and monitoring processes.”
In response, Boohoo launched its ‘agenda for change’ and made a number of appointments.
This week, Ms Kendall stated that Boohoo bosses, including executive chairman, Mahmud Kamani, and the chief executive officer, John Lyttle, had “turned a blind eye” to the issues and called for them to be removed from their positions. She also noted the response from shareholders in the group had been “disappointing”.
Responding to the criticism, a Boohoo spokesperson said: “We’ve been in regular contact with Ms Kendall and her office. Our CEO has met with her twice, including most recently at our invitation to discuss our Agenda for Change following Alison Levitt QC’s report. We were surprised to hear Ms Kendall state in Parliament that she hasn’t received our supplier covid plan, which her office received earlier this week. In the interests of clarity, we have requested Ms Kendall correct her statement.”