Retailer Boohoo is considering closing its controversial Leicester factory and relocating its operations.
Boohoo said less than 100 employees at the Thurmaston Lane factory may be impacted by the closure and it expects that “some roles will be relocated”.
It comes just two months after a BBC investigation alleged Boohoo had broken promises to make its clothes fairly and was pressuring suppliers to drive prices down.
The clothing retailer said the plans to shut the site was not related to the findings of BBC’s Panorama investigation, adding that due to “significant investments” at its Sheffield and US distribution centres, it must now take steps to continue to ensure it is a “more efficient, productive and strengthened business”.
A spokesman for Boohoo said: “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.”
In November 2023, an investigation by BBC Panorama claimed that an undercover reporter working for the business found employees pressuring suppliers to reduce prices even after deals had been agreed and that Boohoo Group’s Leicester factory had been subcontracting orders to Morocco.
It comes around three years after the company overhauled its ethical practices after a supply chain scandal and allegations over factory staff pay and working conditions.
Boohoo said in November at the time of the Panorama investigation that 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”.
It added at the time: “We have made a number of improvements, including strengthening the ethical and compliance obligations on those wishing to supply Boohoo, regularly publishing our full list of approved global manufacturers, responsibly exiting from relationships with suppliers where standards are found to have fallen short, supplementing audit processes with regular unannounced checks and more.”
