default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Investor Drops Boohoo Shares Over Garment Worker Allegations

Standard Life Aberdeen, previously one of Boohoo's biggest investors, said the fast fashion group's response to reports of factory worker abuse was 'inadequate in scope, timeliness and gravity.'
Source: Boohoo
By
  • Reuters

LONDON, United Kingdom — Investor Standard Life Aberdeen said on Friday it had sold its shares in fashion retailer Boohoo, describing the company's response to allegations of worker abuse at supplier factories as "inadequate."

SLA, previously one of Boohoo's biggest investors, has sold most of its stock, a spokesman for the asset manager said, confirming an earlier report in the Financial Times.

Boohoo shares have plunged after The Sunday Times reported that workers in a factory in Leicester, central England, who were making clothes destined for Boohoo, were paid as little as £3.50 ($4.39) an hour.

Boohoo said it would commission an independent review of its supply chain in Britain.

Lesley Duncan, deputy head of UK equities at SLA unit Aberdeen Standard Investments, said the firm had invested in Boohoo since its listing, but said there had been insufficient progress improve working conditions.

The response was "inadequate in scope, timeliness and gravity," Duncan said, adding: "We strive to use our influence as significant investors to achieve progress."

"In instances where our standards have not been met, divestment is both appropriate as responsible stewards of our clients' capital and aligned to our goal of investing for better outcomes."

By Carolyn Cohn; editor: Sujata Rao.

In This Article
Topics
Organisations

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Analysis and advice from the front lines of the retail transformation.

By investing in an elevated product and shopping experience, Spanish retailers Inditex and Mango are seeing tremendous growth despite fierce competition from the likes of Temu and a cash-strapped consumer.


The ByteDance-owned app’s e-commerce play has been met with mixed response from users. Still, sales seem to keep ticking up.



view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional Summit - New Frontiers: AI, Digital Culture and Virtual Worlds - March 22, 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional Summit - New Frontiers: AI, Digital Culture and Virtual Worlds - March 22, 2024