Fast fashion retailer’s shares tumble after reports of investigation into labour abuse allegations
Boohoo faces a possible ban on importing its goods into the US following allegations of slave labour at some of the fast fashion retailer’s suppliers.
Boohoo said it was not aware of any investigations by American customs officials and that it was continuing to fulfil US orders.
Analysts warned that the latest controversy could be damaging for Boohoo which generated more than a fifth of its sales in the US last year. Shares in the company fell more than 5 per cent on Tuesday.
Sky News reported that US authorities had seen enough evidence from campaigners that Boohoo was using forced labour in it supply chain.
Duncan Jepson, a lawyer who runs campaigning organisation Liberty Shared, told Sky there was “compelling” evidence of labour abuses at companies selling goods to Boohoo.
In a statement, Boohoo said: “The group has not received any correspondence from, nor is it aware of any investigation by, US Customs and Border Protection.
“Over the past eight months the group has been working closely with UK enforcement bodies.
Source: The Independent
