Fearing US import ban! Boohoo cuts more than 400 suppliers and comprehensively revamps supply chain

Founded in 2006, Boohoo Group is an online fashion retailer group headquartered in the UK. It mainly targets the 16 to 30 year old market and its main categories are menswear, womenswear, childrenswear, shoes, accessories, bags, jewelry, etc.

According to foreign media reports, recently, British online fashion giant Boohoo announced a comprehensive overhaul of its supply chain, cutting cooperation with more than 400 suppliers.

Boohoo is revamping its supply chain amid fears of a US import ban

Yesterday, Boohoo published a list of 78 approved suppliers covering 100 factories, a significant drop from the 500 suppliers identified in an independent review of the company's business and its supply chain conducted by Alison Levitt QC at Boohoo's request last year.

The group issued a statement on its latest supplier screening, saying : "Boohoo has ceased doing business with a number of manufacturers who, despite being given the opportunity to address any issues identified during the audit process, were unable to demonstrate the high levels of transparency required . "

Boohoo chief executive John Lyttle said: “This is not the end but the beginning of a new way for us to work with suppliers.

It is reported that this large-scale rectification stems from the fact that Boohoo was accused of having problems with its supply chain. Previously, Boohoo was accused of abusing factory workers, which seriously violated the relevant provisions of the 1930 US Tariff Act, which prohibits the import of products containing "materials made in whole or in part with forced labor." Therefore, Boohoo may be subject to an import ban from the United States.

Boohoo loses £1bn in market value after supply chain scandal

In response to large-scale reports and accusations, Boohoo said: "Some factories are not authorized direct suppliers, their clothing is made abroad and is sent to the factory for repackaging without their knowledge."

In response, Boohoo has also conducted an extensive investigation into its supply chain . In addition to appointing Alison Levitt QC to conduct an independent investigation , it has also appointed former judge Sir Brian Leveson as chairman of the board of directors, requiring him to conduct ongoing monitoring of Boohoo's supply chain.

Following the review, Boohoo cut ties with 64 factories , consolidated others and stopped subcontracting.

Other retailers including Next and Asos have also removed the Boohoo brand from their websites while investigations are carried out. Boohoo quickly hired Levitt to look into the allegations.

Reports of supply chain problems were reported to have been extremely damaging to Boohoo , with £1bn wiped off the company's share price in two days . Boohoo has since recovered much of that value thanks to its quick actions .

John Lyttle, chief executive of Boohoo, said : “ The publication of our UK supply chain list marks another step towards greater transparency and positive change .

Boohoo

Supply Chain

Allegations