Boohoo Loses Half Its Market Value as Labor Abuse Worries Mount
- Clothing retailer hires Bureau Veritas for independent probe
- Boohoo cuts ties with two suppliers that broke code of conduct
Photographer: Dana Pleasant/Getty Images
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Boohoo Group Plc promised an independent review of its supply chain after concern over the exploitation of labor cut the U.K. online fashion retailer’s market value in half in three days.
Boohoo said Wednesday that it cut ties with two suppliers that infringed its code of conduct in an effort to eliminate labor abuses in Leicester, England, one of its biggest sourcing hubs for fast-fashion seller’s 6-pound miniskirts. That only heightened investor concerns, and the stock fell as much as 24% Wednesday, reducing the company’s value to 2.7 billion pounds ($3.4 billion).