Asos, Next and Zalando have pulled Boohoo products from their websites following allegations of modern slavery at a warehouse in Leicester, Retail Week can reveal.
Asos is understood to have temporarily suspended sales of Boohoo’s brands including Boohoo, PrettyLittleThing, Nasty Gal and BoohooMan, pending the outcome of the retailer’s investigation into the allegations.
Zalando, often referred to as the German Asos, has also stopped selling Boohoo products via its platform indefinitely.
The etailer said it would only consider stocking Boohoo products again “once all corrective actions have been satisfactorily addressed” by the business.
Zalando said: “During the coronavirus crisis, the health and safety of our employees are of utmost importance to Zalando. We adjusted to this ‘new normal’ with strict preventative measures to keep all employees safe while staying open for business.
“We expect our partners to apply similar fundamental priorities and will distance ourselves from those who don’t.”
It added: “As part of our sustainability strategy ‘do.More’, it is our goal to continuously increase ethical standards and only work with partners who align with them by 2023. We, therefore, have made assessments around ethical and sustainable parameters for our brand partners mandatory.
“In line with this, Zalando will define specific actions to address endemic human rights issues identified with Boohoo and in their supply chain. Only once all corrective actions have been satisfactorily addressed by Boohoo can a conversation be revisited to discuss the commercial relationship between Zalando and the Boohoo group moving forward.”
Next pulled products from Boohoo and Pretty Little Thing from its website last week.
A spokesperson from the retailer said: ”In response to the report from Labour Behind The Label, Next concluded there is a case for Boohoo Group to answer. As a result, last week Next removed the Boohoo and Pretty Little Thing branded items it was selling previously, from all Next websites. Nasty Gal was not being sold by Next”.
“Next needs to prove to itself the two Boohoo Group labels that it was stocking are being sourced in a manner that is appropriate and acceptable to Next. Next, therefore, has its own investigation underway to ascertain whether they are being made in a way that Next does not approve of. Next is not pre-judging the outcome of this process and no final decision has been made, however, while there is a case to answer, these labels will remain suspended from all Next websites”.
“Next’s general approach to working with third-party brands is one that is based upon trust. However, when information surfaces that cannot be ignored, as is the case here with these Boohoo Group labels, Next needs to prove to itself that all is in order before it can continue selling them.”
Asos declined to comment.
The delistings represent a significant blow for Boohoo amid allegations of modern slavery at a warehouse in Leicester following an investigation by The Sunday Times.
An undercover probe revealed employees at a site operating under the name Jaswal Fashions were being paid as little as £3.50 per hour. The investigation recorded footage of an undercover journalist packing garments for Boohoo’s Nasty Gal brand.
Nasty Gal insisted that Jaswal Fashions was not a “direct supplier” to the group, but pledged to launch an investigation into the claims.
Boohoo’s share price has dived following the revelations, plunging 23% yesterday and a further 12% today.
Top investors Merian Global Investors and Baillie Gifford both told Retail Week they were engaging with the fashion retailer on its response to the allegation
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