Next, Zalando and Amazon drop Boohoo over worker rights allegations

Platform Economy: Woman shopping on an e-commerce website

Prominent retail businesses Next, Zalando and Amazon are delisting products made by Boohoo following a media report about dire working conditions in an English factory that supplied the popular brand.

KEY POINTS:

  • Next, Zalando and Amazon are delisting products made by Boohoo Group Plc
  • The move follows media reports highlighting the dire working conditions in a UK factory that supplied the brand

Boohoo shares have slumped since the Sunday Times newspaper said workers in a factory in Leicester, central England, making clothes destined for Boohoo were being paid as little as 3.50 pounds ($4.38) an hour.

Boohoo said on Monday it will end relationships with any supplier found to have breached its code of conduct. It could not immediately be reached for comment on Tuesday.

Next said it had already removed all Boohoo and Pretty Little Thing branded items from all 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.

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Zalando said in a statement it would define specific actions to address human rights issues identified in Boohoo’s supply chain and would discuss renewing a commercial relationship only when Boohoo had taken corrective measures.

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

The team at Platform Executive hope you have enjoyed the ‘Next, Zalando and Amazon drop Boohoo over worker rights allegations‘ article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Emma Thomasson in Berlin, Paul Sandle in London and Sabahatjahan Contractor in Bengaluru. Editing by Matthew Lewis.

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