boohoo Group Cuts Over 400 Suppliers As It Publishes Its Approved UK Manufacturers List

Image Courtesy of Boohoo PLC

Online fashion retailer boohoo Group PLC has publicised details of its UK manufacturers and new sustainability strategy, marking a key milestone in the company’s ‘Agenda for Change’ programme.

Exactly six months after publishing the independent report produced by Alison Levitt QC, boohoo Group PLC has today published details of its UK manufacturers meeting its commitment for increased transparency.

It recently published a list of 78 approved manufacturers operating across 100 UK sites—a reduction from around 500 suppliers identified in an independent review of the business by UK lawyer Alison Levitt last year.

The announcement is the result of intensive work carried out through the Group’s Agenda for Change programme, to map and audit the company’s manufacturers and introduce changes to the way the business works with its suppliers.

This creates stronger partnerships and more sustainable business and industry practices.

In November 2020, the Group appointed former High Court Judge Sir Brian Leveson to provide independent oversight of the implementation of the Agenda for Change programme.

The significantly strengthened responsible sourcing and compliance team led by Director of Responsible Souring, Andrew Reaney, has been working with independent auditors Verisio and Bureau Veritas to examine the working practices of suppliers and a majority of UK suppliers have been audited twice over the last eight months, including in the evenings and at weekends.

Additionally, Sir Brian commissioned Tim Godwin OBE, former acting Commissioner of the Metropolitan Police, to carry out additional forensic level enquiries to identify and address any irregularities in the leadership and management of suppliers’ businesses.

As a result of this extensive mapping and auditing work, the Group is today meeting one of Ms. Levitt’s core recommendations by publishing its listof approved UK suppliers.

The published list of suppliers will continue to have their operations and standards monitored frequently to drive long-term, positive change.

This will include checks on working conditions and overall compliance with the Group’s supplier Code of Conduct.

In his second report to the boohoo Group Board, also published today, Sir Brian Leveson states: “...it is clear that few, if any, companies undertaking due diligence of their supply chains have gone to the lengths undertaken by boohoo and for which it deserves credit”.

The Group has ceased doing business with a number of manufacturers who were unable to demonstrate the high standard of transparency required, despite being provided with opportunities to address any issues identified in the auditing process.

The Group remains committed to UK manufacturing and growing volumes with trusted and compliant suppliers who have demonstrated a desire to deliver the high standards expected.

Sir Brian Leveson also states in his second report: “It is important to underline that removal from the supply chain is being undertaken responsibly; existing contracts are being honoured but no new orders can be placed other than with a supplier who has been approved by the process”.

boohoo CEO, John Lyttle, said: “This is the not the end of a project for us at boohoo but the beginning of a new way of working with our suppliers. We have faced up to the problems of the past and are now driving positive change in the industry. We want to play our part in rebuilding a vibrant manufacturing base in Leicester, one that offers good employment and great prospects for the workers and the industry in Leicester as a whole.”

Under the leadership of the Group’s new Senior UK Ethical Compliance Manager, Ben Geary, suppliers are also actively engaged in moving their nominated CMT units in-house to strengthen oversight and ownership and provide greater protection to workers.

“For those of us in Leicester who take pride in the clothing manufacturing industry, the last year has been really tough. We are grateful for boohoo sticking by UK manufacturers and taking a stance with an agenda for change. With our joint efforts, all the good suppliers are confident that this  will start building Leicester to be a great manufacturing hub. We hope that the work boohoo has done gives other retailers the confidence to begin buying British once again.” Sajid Esa, 5thAvenue Clothing.

In response to the Levitt review, the Group also committed to strengthening its internal purchasing practices.

The Group’s buying and merchandising teams have been actively involved in the development of both new technology and responsible purchasing practices.

These new ways of working and tech solutions ensure that orders can only be raised with approved suppliers who have a current audit on record.

Our teams also have increased visibility of the capacity of every supplier and exactly what is being produced in the UK and overseas, which ensures that orders are not placed with suppliers who are reaching capacity.

The Group are also delighted to announce the launch of its new Sustainability Strategy

The new strategy, UP.Front, is a no-nonsense, set of measurable targets focussed on Clothes, made smarter, Suppliers on better terms and Our Business, taking action.

It has been designed to reduce the Group’s carbon footprint, reduce waste and use our size and scale for good.

In line with the Group’s commitment to increased transparency, Sir Brian’s second Board report is also published today and can be viewed here.