🔍 Job Cuts at PLT
PrettyLittleThing (PLT), owned by Boohoo Group, is cutting over 50 jobs at its Manchester head office. Affected staff were informed via video call last week. This move is part of a broader strategy to control costs and streamline operations. A Boohoo spokesperson stated, "Following a review of business operations, we have made the difficult but necessary decision to propose some changes to the structure of some of our teams, which affects some roles." RETAILGAZETTE.CO.UK
📉 Boohoo's Financial Struggles
In December 2024, Boohoo announced plans to cut approximately 200 roles across its brands, including PLT. The company has faced declining revenues and increased losses, prompting efforts to reduce expenses. These challenges reflect broader issues in the fast fashion industry, as companies grapple with changing consumer behaviors and economic pressures. RETAILGAZETTE.CO.UK
💼 Frasers Group's Allegations
Frasers Group, led by Mike Ashley, has accused Boohoo of making undisclosed payments to Umar Kamani, PLT's founder and son of Boohoo's co-founder. They allege Kamani receives over £2 million ($2.5 million) annually for consultancy services, with payments directed to a Dubai bank account. Frasers is demanding transparency regarding this arrangement, citing concerns over governance practices. RETAILGAZETTE.CO.UK
🔄 Leadership Dynamics
Umar Kamani returned to PLT in September 2024 to "take on the responsibility of steering PLT forward" after stepping back in 2020. His return and the alleged consultancy fees have raised questions among shareholders about the company's governance and financial transparency. Boohoo has yet to provide detailed responses to these concerns. FASHIONUNITED.COM
How should fashion brands balance cost-cutting with ethical practices?
