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Amazon, ASOS, Next, and Zalando pull Boohoo's brands from their websites following reports that suppliers' factory workers are paid as little as $4 an hour

Jul 8, 2020, 15:21 IST
Business Insider
Boohoo is the UK's fast-growing fast-fashion brand.Boohoo
  • Amazon, ASOS, Next, and Zalando are among the retailers that have dropped Boohoo's clothing from their own websites, following reports of workers' rights violations in factories supplying clothes to Boohoo.
  • Boohoo is currently investigating these allegations and has launched an independent review of its supply chain.
  • Amazon, ASOS, and Zalando said they have pulled Boohoo and its sister brands' clothing and accessories from their sites while the company conducts its investigation.
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Retailers Next, Zalando, Amazon.com, and ASOS are delisting products made by Britain's Boohoo Group, following a media report about dire working conditions in an English factory that supplied the popular brand.

Boohoo shares have slumped since the Sunday Times newspaper reported that workers in a factory in Leicester, central England, making clothes destined for Boohoo were being paid as little as £3.50 ($4.38) an hour. Boohoo has launched an independent review of its supply chain and cut its relationship with two suppliers.

Amazon said it would pull Boohoo's products while the company conducted its investigation.

"Selling partners are required to follow all applicable laws, regulations, and Amazon policies when selling in our store," a company representative said. "We will be suspending the sale of the brands in question."

In addition, ASOS has temporarily suspended its trading relationship with all Boohoo brands until Boohoo has completed an investigation and ASOS receives assurances about supply chain practices, the Financial Times reported, citing a person familiar with the matter.

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Next said it had already removed all Boohoo and Pretty Little Thing-branded items from its websites last week in response to a report from workers' rights group Labour Behind the Label.

"Next concluded there is a case for Boohoo Group to answer," a spokesman said, adding it had started its own investigation to check the items were sourced in a manner appropriate and acceptable to the retailer.

Zalando said in a statement that it would discuss renewing a commercial relationship only when Boohoo had taken corrective measures.

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