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Boohoo defends supply chain practices after Leicester report

The online fashion retailer is being accused of putting workers at risk of coronavirus infection in its Leicester factories
The online fashion retailer is being accused of putting workers at risk of coronavirus infection in its Leicester factories

Boohoo has defended its business practices after a garment workers' rights group said the online fashion retailer was putting workers at Leicester factories supplying the group at risk of coronavirus infection. 

The allegations came after Britain imposed stringent lockdown on Leicester this week after a local flare-up of coronavirus. 

Labour Behind the Label campaigns for workers' right.

It said it had received reports of "workers being forced to come into work while sick with Covid-19, workers wishing to isolate being denied pay, and factories operating illegally throughout lockdown".

Boohoo, which sells own-brand clothing, shoes, accessories and beauty products targeted at 16 to 40-year-olds, is by far the biggest company on London's micro cap AIM index, with a market capitalisation of £5 billion. 

The high-flying retailer's shares, which have risen 33% since the start of the year, slid 1% on the report. 

Boohoo gained more popularity during the virus lockdowns as consumers shopped more from their mobile phones. 

"The Boohoo group will not tolerate any incidence of non-compliance especially in relation to the treatment of workers within our supply chain," the company said. 

"We have terminated relationships with suppliers where evidence of this is found," it added.

The group said it would investigate the allegations and take any necessary action.