Boohoo’s labor issues are a far too common problem in fashion

Boohoo, a UK fast-fashion retailer, is under pressure after damning reports emerged about labor conditions at factories in Leicester said to be making clothes for the company.

An undercover investigation by The Sunday Times alleged that workers at one factory contracted by Boohoo to produce its clothes earned as little as £3.50 (about $4.40) an hour, despite a national minimum wage of £8.72 for those 25 and older, and had little protective equipment at a time when Leicester is struggling to contain Covid-19. It followed on a June report (pdf) from watchdog group Labour Behind the Label that said Leicester factories producing for Boohoo and others continued working at full capacity, often without adequate safety protocols, through the city’s coronavirus lockdown in April. Boohoo has called the reports inaccurate and emphasized it does not tolerate violations of its supplier code of conduct, though it has cut ties with two suppliers and commissioned an independent review of its supply chain.

The news produced a swift reaction. Boohoo’s share price initially fell more than 40% before rebounding slightly, and retailers including Amazon, ASOS, and Next have pulled clothes from Boohoo and its brands from sale. It’s a significant response, particularly given that such allegations are hardly new—even to Boohoo—and have plagued the fashion industry for years.

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