BooHoo Supply Chain Risk Management BusinessRiskTV
BooHoo which owns brands like Pretty Little Thing and Nasty Gal will undertake an independent review of its UK supply chain following allegations that factories in Leicester that sell clothes to BooHoo pay workers below minimum wage in UK and failed to protect them during coronavirus pandemic.
BooHoo has also announced it will invest an initial 10 million pounds to eradicate malpractice in supply chain risk management step. BooHoo has to now rebuild its brand reputation following the allegations in its supply chain. It has promised to terminate any supply chain relationship where noncompliance with its code of conduct is found.
BooHoo has found like companies before it the cost of supply chain management impacting on its profit. Companies like Next ASOS and Amazon have removed all BooHoo clothing from sale following the allegations about BooHoos supply chain. More than a billion pounds was quickly knocked of BooHoos market value.