boohoo slave labour allegations spark US import ban fears
Online fashion retailer boohoo is facing a possible United States import ban due to allegations over the use of slave labour.
According to a Sky News report, US Customs and Border Protection has seen sufficient evidence to launch an investigation following petitions from Duncan Jepson who runs Liberty Shared, a campaign group against modern day slavery.
Last year, a Sunday Times investigation exposed evidence of illegally low wages and poor working conditions in boohoo's supply chain in Leicester, where 40% of its clothes were being manufactured.
Jepson told Sky News: "The evidence of boohoo and forced labour is quite compelling. I think it will be a wake-up call for British institutions about how they're handling modern slavery enforced labour, particularly in a community like Leicester East.”
He added: "What we'd all like, those of us interested in improving labour conditions, is for boohoo to really get to grips with governance of their supply chain to ensure there is no wage theft and people have proper contracts.”
"It must look at all 11 indicators the International Labour Organisation sets out for forced labour and see there is compliance with those."
boohoo, which recently bought the Debenhams brand and website for £55 million and announced it would take it online only, launched in 2006.
Last year, its sales rose 40% to £1.235 billion, with profits of £92.2 million. Sales in the US were £263.6 million, more than a fifth of the company's total revenue.
boohoo did not respond to our request for comment regarding the aforementioned import ban.
Sign up for our free retail technology newsletter here.
