According to an undercover BBC Panorama investigation, Boohoo has not lived up to its commitments to produce its clothing properly. The fast fashion behemoth is allegedly forcing suppliers to lower costs even after agreements have been reached.
At the company’s Manchester headquarters, an undercover reporter claimed to have observed evidence of workers pressuring suppliers to lower costs even after agreements had been finalized.
The reporter was instructed to process a five percent discount on over 400 orders that were pre-agreed upon, saving Boohoo hundreds of pounds, one day.
Price reductions were “even demanded on orders which had already been made and were ready for delivery,” according to the BBC report.
Additionally, during the reporter’s undercover job, Boohoo experienced an average delay of more than 10 weeks between placing an order and getting it for six weeks in the dresses category.
After that, a new rule with a six-week lead time or less was put into effect for the entire organization. Suppliers from China and India receive an extra week. After a week of grace, Boohoo gave a five percent price reduction for each week that a supplier’s order was late.
Boohoo, like many other online retailers, has recently experienced financial challenges as a result of customers reducing their clothes purchases as a result of the rising cost of living.
