‘Challenges remain’ says top judge as final report on Boohoo supply chain issues published

Online retail giant Boohoo has met the targets of its agenda for change to improve working conditions in its supply chain but ‘Challenges remain,’ a top judge has warned.

The fifth and final update report, overseen by judge Sir Brian Levinson, has tracked the progress of Boohoo against recommendations laid by Alison Levitt QC in in September last year after she found evidence that factories in Leicester were putting workers’ health at risk during lockdown and failing to pay them the minimum wage.

The retired judge was then appointed to provide oversight for Boohoo’s Agenda For Change programme.

In the latest update Levinson said: “I do not pretend that the conclusion of the Agenda For Change programme and its transfer into business as usual represents the completion of each aspect of each recommendation made in the review.

“Many have been completed; others are in progress but still require continued effort to bring to fruition: this is not the least true in respect of the ambitious IT programmes that have been undertaken and are in the process of implementation and in relation to the group’s ambition for Thurmaston Lane as a centre of excellence for garment manufacture in Leicester.

“Furthermore, even if all the recommendations had been completed (or when they are), it cannot be said that it would represent the end of the process.

“I have no doubt that there will continue to be challenges and difficulties along the way and Boohoo must be prepared to demonstrate that, in relation to each aspect of its business, it has exercised due diligence to ensure that legal and ethical standards have been maintained by all both in the business itself or, just as important, in its supply chain.”

Following the review, under the group’s Supplier Hub plan, suppliers of Boohoo will now require independent approval on their sourcing, ethical compliance, factory approver and finance, with buyers unable to raise a purchase order from suppliers outside the system.

Levinson also highlighted improvements including the embodiment of the Garment and Textile Workers Trust and its new manufacturing facility in Leicester.

The retailer intends to launch 23 key performance indicators to manage against modern slavery practices.

Boohoo’s share price has fallen 30% this month and is currently trading at 67.72p.

The Manchester-headquartered company has previously-highlighted higher costs in its supply chain and higher wages for its workers would impact margins.

More recently there have been fears of a recession in the wake of the Russian invasion of Ukraine.