Boohoo may be forced to shift 40% of its production overseas following slave labour allegations
Boohoo could need to move as much as 40 per cent of its production overseas following allegations of slave labour in Leicester, a City expert has predicted.
Credit Suisse analyst Szilvia Bor said the fast-fashion group may need to make considerable changes to its business model as it works to rebuild its reputation.
Bor said if her estimates were right, the manufacturing shift could wipe 30 per cent off profits by 2022.
Credit Suisse analyst Szilvia Bor said Boohoo may need to make considerable changes to its business model as it works to rebuild its reputation
Boohoo has been rocked by claims that some of its clothes were being packaged in sweat shops where staff were paid as little as £3.50 an hour.
The scandal has shaved more than 40 per cent off the AIM-listed company’s share price in two weeks – costing founders Carol Kane and Mahmud Kamani, and the rest of the Kamani family, more than £400million.
On Thursday, in an effort to revive the business’s share price, Kamani and Kane bought 7m shares at an average price of 214.25p.