🔍 Supplier scandal resurfaces
Boohoo, the UK fast fashion giant, is facing criticism for resuming business with GN Euro, a supplier it cut ties with in 2021. GN Euro, now operating as Euro Touch in Morocco, was previously dropped due to modern slavery allegations at its Leicester site. Boohoo insists its Tangier-based factory adheres to stringent ethical guidelines. The controversy follows Boohoo’s global supplier overhaul, initiated after a 2020 exposé revealed workers being paid below minimum wage in UK factories.
📉 Boohoo's financial troubles
Last week, Boohoo reported its losses had tripled, intensifying scrutiny of its operations. The company has faced backlash for cost-cutting measures and ongoing supply chain issues, despite removing over 400 suppliers and pledging transparency. A spokesperson stated that all suppliers undergo rigorous checks, yet campaigners argue that systemic issues persist. Critics suggest that the company’s ethical promises have failed to translate into meaningful changes across its supply chain.
🛡️ Ethical overhaul questioned
Boohoo’s response to the 2020 scandal included publishing a global supplier list and implementing a code of conduct for partners. Despite these measures, campaigners accuse Boohoo of failing to resolve deeper supply chain issues. They claim that problems like low wages and poor conditions remain widespread. Boohoo, however, maintains that Euro Touch complies with its code of conduct and third-party audits. Transparency advocates argue that real accountability is still missing.
🏛️ Leadership shakeup amid criticism
The controversy comes as Boohoo faces a leadership challenge. Frasers Group has called for Chairman Mahmud Kamani’s replacement by retail mogul Mike Ashley, citing Boohoo’s “chaotic” state. Kamani will step into an executive vice-chair role while non-executive director Tim Morris takes over as independent chair. This leadership restructuring, coupled with ongoing supply chain woes, raises questions about Boohoo’s ability to navigate its ethical and financial crises effectively.
Is Boohoo's ethical revamp just a PR move?
