The Kamani family, founders of the fast-fashion empire Boohoo, are under fire after an investigation alleged workers at a Leicester supplier were paid as little as £3.50 an hour in cramped conditions. The scandal has wiped over £335 million from the family's wealth in two days, as the company's share price dropped by a third.
Home Secretary Priti Patel described the reported conditions as 'truly appalling', while critics label the Kamanis 'the unacceptable face of fast fashion'. The investigation also claimed workers with COVID-19 symptoms were told to come to work, with little social distancing or PPE.
Boohoo founder Mahmud Kamani insisted the family are 'good, hard-working, honest people' and has appointed a QC to investigate. The company denies that Jaswal Fashions Ltd was a direct supplier, but admits uncovering 'non-compliance' with its code of conduct.
The controversy is not the first for Boohoo, which shrugged off a 2018 Financial Times report on unsafe working conditions. However, retailers including Next, Asos, and Amazon have now suspended sales of Boohoo brands.
Despite the backlash, Boohoo's online-only model thrived during lockdown, with sales jumping 45% to £368 million in the three months to May. The group recently acquired Warehouse and Oasis, adding to its portfolio of brands like Pretty Little Thing and Nasty Gal.
