Boohoo considers shutting factory after BBC investigation

Boohoo is considering closing its first-ever manufacturing site after a BBC investigation found it had broken promises to make clothes ethically.

The site in Thurmaston Lane, Leicester, opened in 2022, with plans for it to also be used as a training facility.

But a reporter at the firm's headquarters saw evidence of staff pressuring suppliers to drive prices down, even after deals had been agreed.

The Manchester-based firm said fewer than 100 employees at the factory might be affected, and it expected "some roles" to be relocated.

A spokesperson added: "We opened Thurmaston Lane in January 2022 to support the group in several ways, including manufacturing, printing and training.

"As in any retail business, the role of our sites continues to evolve over time and following significant investments at our Sheffield distribution centre and the opening of a new distribution centre in the US, we must now take steps to continue to ensure we are a more efficient, productive and strengthened business.

"All these factors have led us to make the difficult decision to consider relocating some of the operations at Thurmaston Lane and consider the closure of the site in due course.

"We are now in a period of consultation and are working closely with all affected colleagues to ensure they are fully supported during this process."

The firm had faced allegations over poor pay and supply chain failings prior to the opening of the factory.

At the time, Boohoo said it was "committed to the city of Leicester and ethical British manufacturing".

In 2020, Boohoo pledged to overhaul its practices after claims it had tolerated widespread abuses of employment law at some of its suppliers in Leicester.

The review concluded that although Boohoo did not intentionally profit from the poor working practices, the firm's monitoring of these factories was "inadequate".

The company then introduced Agenda for Change - which includes promising to pay its suppliers a fair price for garments, with realistic timescales.

But BBC reporter Emma Lowther saw those promises being consistently undermined during her 10 weeks undercover at Boohoo's head office, where she worked as an admin assistant.

The BBC investigation, published two months ago, revealed that Boohoo put pressure on suppliers to drive prices down - even after orders had been agreed.

It also found hundreds of orders placed with Thurmaston Lane were actually being made by seven factories in Morocco, and four in Leicester.

Boohoo's lawyers say Thurmaston Lane only makes 1% of all Boohoo's garments.

At the time of the investigation, Boohoo said it "has not shied away from dealing with the problems of the past and we have invested significant time, effort and resource into driving positive change across every aspect of our business and supply chain".

Fast fashion giant Boohoo faced serious criticism in 2020 for poor working conditions at its suppliers. A Panorama investigation reveals renewed pressure to cut costs.