Fast fashion retailer Boohoo is “considering the closure” of its first ever UK factory in the wake of a BBC Panorama exposé which found it had broken its promises to make clothes more ethically.
The online business opened the manufacturing site in 2022, with the aim of improving its working practices – including poor pay and unacceptable treatment of workers making its clothing.
At the time, Boohoo said it was “committed to… ethical British manufacturing”.
However, a reporter working at the Leicester site for last year’s undercover documentary found a number of failings, including suppliers still being put under pressure to drive prices down after deals had been agreed.
It also found that some orders being placed via the factory were being made elsewhere in Leicester as well as Morocco.
Boohoo has denied the potential closure is related to the BBC Panorama investigation.
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“As in any retail business, the role of our sites continues to evolve over time and following significant investments at our Sheffield distribution centre and the opening of a new distribution centre in the US, we must now take steps to continue to ensure we are a more efficient, productive and strengthened business,” it said.
“All these factors have led us to make the difficult decision to consider relocating some of the operations at Thurmaston Lane and consider the closure of the site in due course.”
The business is currently in a period of consultation, but Boohoo says it expects fewer than 100 employees to be affected, with “some roles” being relocated. It also says it is working closely with all affected colleagues to ensure they are fully supported during the process.
The fast fashion retailer initially launched its Agenda for Change programme in 2020 following allegations of its workers earning less than minimum wage in unsafe working conditions.
The new programme promised to pay suppliers a fair price for garments, with realistic timescales.
