Boohoo Contemplates Closing Factory After Investigation On Its ‘Model’ Practices

Photo 249243400 © Timon Schneider | Dreamstime.com

Boohoo might be in a bit of a stitch as the fast-fashion e-retailer mulls shuttering its factory on Thurmaston Lane in Leicester, England. This decision comes merely two years after the plant’s grand opening.

Initially established with the publicized intention of setting a benchmark for the ethical treatment of workers in the fashion industry, the Thurmaston Lane factory zeroed in on “supplier learning and development” and the creation of 170 new jobs. However, this thread of thought seems to have unraveled differently.

The inception of the Thurmaston Lane factory stemmed from an investigation by Alison Levitt KC in 2020. Her findings exposed unsafe working conditions and a failure to meet minimum wage standards in Leicestershire factories during the lockdown.

In response, Boohoo started this plant as a model facility for better worker treatment, but a BBC Panorama investigation in November last year painted a starkly different picture; ever since its opening, the Thurmaston Lane factory has been no stranger to controversy. The Panorama report sent shockwaves when it revealed that some orders supposedly produced at this factory were, in fact, being made in Morocco and other Leicester facilities, raising crucial questions about the true nature of its operations.

This backtracking on commitments left a bitter taste, with reports of staff being allegedly compelled to leave the UK and murmurs of redundancies.

Boohoo’s manufacturing endeavors in the UK have been dwindling over time, as reported by the Guardian. In 2022, the retailer sourced only 25% of its products locally, a figure that dropped to a mere 20% in the following year. With the closure of this factory looming, it seems this commitment will take an even more significant hit.

Responding to previous allegations, a spokesperson for Boohoo Group—which owns other brands like Debenhams and Pretty Little Thing—states that the contemplation of factory closure is part of its strategy to streamline operations, enhance productivity, and fortify the company.

This “difficult” move follows substantial investments in its Sheffield distribution center and the recent opening of a new distribution hub in the USA, the representative adds.

Currently, Boohoo is in talks with around 100 employees at the site, pondering the fate of their roles. Some are directly involved in manufacturing, while others are dedicated to quality assurance and ethical compliance. The latter group might see a change of scenery as they’re expected to be relocated to another site within Leicester.

[via Evening Standard, This Is Money, The Guardian, BBC, cover photo 249243400 © Timon Schneider | Dreamstime.com]