Boohoo’s major shareholder hems in executive director amidst investigation

Boohoo’s major shareholder hems in executive director amidst investigation

Boohoo’s largest external shareholder, Jupiter Fund Management, has rejected MPs’ call for Mahmud Kamani to step down as an executive director. This follows an independent review which revealed illegally low pay and life-threatening conditions for the factory workers making its clothes. PricewaterhouseCooper LLP (PwC) also stepped down as auditor this month after six years of working with the fashion retailer. PwC declined to comment on its motive for ending its relationship with the family run business.

In July an independent investigation led by Alison Levitt, a senior lawyer and former principal legal adviser to the Crown Prosecution Service, was launched by Boohoo, following concerns by investors and customers about the treatment of its workers. Levitt stated that ‘Commercial concerns such as growth and profit were prioritised in a way which made substantial areas of risk all but invisible at the most senior level.’ The review found poor working conditions in factories in Leicester, including ‘serious health and safety violations’ and underpayment of staff which contributed to employees’ rights being ‘ignored and/or neglected on a wide scale’. Home Secretary Priti Patel also implored Boohoo to work with suppliers and ensure better protection for vulnerable workers. For more information, see:

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