December17, 2020— Boohoo co-founder and executive chairman Mahmud Kamani has told MPs he will “fix whatever’s gone wrong” at his fast-fashion empire after failings in its supply chain were brought to light this year.
Giving evidence to parliament’s Environmental Audit Committee as part of its investigation into the fashion industry, Kamani said Wednesday: “We have made some mistakes but over the last 14 years we’ve got more right than wrong and we have a very very fast-growing business.
“I’m determined to fix whatever’s gone wrong and I understand things have gone wrong because of the fast-growing nature of this business.”
In September, an independent review of Boohoo’s UK supply chain found “many failings” in the factories of some of its suppliers in Leicester.
Boohoo pledges to fix UK supply chain failings
The review was launched after an undercover investigation in July by The Sunday Times alleged some of the Leicester factories supplying clothes to Boohoo were paying workers just 3.50 pounds per hour and forcing some to work while sick. Boohoo denied claims of illegal wages.
When publishing the results of the independent review, Boohoo announced its Agenda for Change programme in which it set out six steps to enhance its supplier audit and compliance procedures, including the bolstering of its corporate governance through the appointment of new independent directors and the launch of a Supply Chain Compliance Committee.
Boohoo told the committee Wednesday it had exited arrangements with 64 Leicester suppliers and factories since late 2019 after finding violations of its code of conduct.
It has also reportedly carried out 400 unannounced audits this year.
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