Boohoo, a popular clothing retailer, is under fire for reconnecting with a supplier that was previously banned due to a modern slavery scandal. The supplier, GN Euro, based in Leicester, is now back in business with Boohoo, despite being cut off in 2021. This decision has raised concerns about Boohoo’s commitment to ethical standards and why they are re-engaging with suppliers who had been removed.
Although Boohoo claims that all goods from GN Euro now come from a different factory in Tangier, operating under the name Euro Touch, questions still remain about the reconnection. This move comes at a time when Boohoo’s co-founder, Mahmud Kamani, is facing a power struggle with Mike Ashley, the largest shareholder of the company. Ashley has criticized Boohoo’s leadership and governance, putting pressure on the board to make significant changes.
Campaign groups like Labour Behind The Label have expressed worries about Boohoo’s supply chain and the re-involvement of previously banned suppliers. They urge the UK government to hold brands like Boohoo accountable and ensure transparency in their operations. Boohoo had previously cut ties with over 400 suppliers in response to allegations of slave labor and poor working conditions in its factories.
An independent review by barrister Alison Levitt KC confirmed these allegations, pointing out the lack of monitoring and weak corporate governance within Boohoo. Despite efforts to improve its image and implement an ethical overhaul, concerns about the supply chain persist. Boohoo maintains that it only works with suppliers who meet their high standards and undergo thorough checks and audits.
The decision to bring back GN Euro has sparked controversy, with critics questioning Boohoo’s integrity and commitment to ethical practices. While the company denies any decline in standards, the reasons behind GN Euro’s initial dismissal during the supplier culling process remain unclear. Boohoo emphasizes its transparency in listing all suppliers on its website and conducting regular audits to ensure compliance with codes of conduct.
Efforts to reach out to GN Euro for comments were unsuccessful, leaving lingering doubts about the implications of Boohoo’s supplier decisions. As the company navigates through governance challenges and strives to rebuild trust with consumers and stakeholders, the spotlight remains on its actions and accountability in the supply chain.
