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Pokerchips - because Boohoo made one mistake, contracted to one supplier who subcontracted to a dodgy supplier. The majority of Boohoo suppliers in the UK are good, honest manufacturers.
Boohoo contract 40% of their work to UK manufacturers. There was one rogue subcontracted supplier.
Next and ASOS don't contract anything like 40% of their work to UK manufacturers. They contract outside the UK to make more profit for themselves. Contracting work outside the UK is cheaper and more profitable than contracting work in the UK hence why Next and ASOS use suppliers from outside the UK.
Boohoo should be congratulated for contracting 40% of their work in the UK and not demonised for one rogue subscontracted supplier.
Peoplepower1
I am not interested in Next or Asos...what matters right now is BooHoo sending out a statement to the stock market that now makes them untrustworthy....how can they have issued that..and then this ??
The majority of Next suppliers are from China, Bangladesh and Cambodia. Do you think they oversee them every day?
The majority of ASOS suppliers are from China, India and Turkey. Do you think they oversee these manufacturers every day?
Don't ASOS use the same Leicester suppliers? And probably Next
Pokerchips - and you're saying Next and ASOS oversee their suppliers every day when their suppliers are not even in the UK.
Next and ASOS are doing their best to look like they're taking the moral high ground. When it's all PR by them to make money out of this. That shows their true colours.
I woud think Boohoo are investigating this thoroughly before releasing a RNS.
If you do a search on the asos website for boohoo it comes up with 30,000 products for asos items only, that to me says asos is trying to make a very fast buck out of boohoo’s misfortune, nothing todo with morals from asos!
You missed my post earlier that in March ASOS were in trouble . They had a Leicester supplier and did not give employees sufficient virus room and denied toilet breaks.
Large at UT trade seen £3 million sale.
" Our fantastic warehouse teams have adapted to completely new ways of working to ensure that they abide by all the social distancing procedures that we have in place. We are in constant contact with them and are working day and night to ensure that everyone is following the new systems, has what they need and, most importantly, that our teams are happy and healthy. Their ongoing safety and wellbeing is our number one priority.
As a group, we are standing alongside our suppliers, continuing to pay them promptly with industry-leading payment terms for all of their orders. We have also set up an emergency fund to help suppliers through this difficult period"
Peoplepower1
if you release that staement to the stock maket then clealry something is not right ....clearly this should not be happeneing..if indeed the above STRONG statement was in fact true
BooHoo knows the size and output potential of each of its suppliers...it SHOULD know what business activity it has ...it seems obvious that the demand outstripped the supplier work output and there was not enough watch over how the extra demand could be made
...they turned a blind eye
Probably waiting for dust to settle first while they investigate the matter. If they came out now and rebutted the claims, people would still try and short through their PR. Better to wait for the initial market overreaction to run its course before sending a positive PR into consolidated price action = more upthrust.
What sales / profit does this contribute to Boohoo through these outlets?
Surely we must have an RNS from BOO shortly as this is not good for there PR? They need to sort this pronto and get a positive message out there
Next and ASOS have suspended selling Boohoo items until the investigation has been completed.
Next and ASOS are climbing on the bandwagon to make money out of Boohoo for themselves. What does that say about them?
Next and ASOS are using this to say we're the good guys and Boohoo is the bad guy. Next and ASOS are being greedy by trying to make money out of this for themselves. They have all been jealous of Boohoo's success particularly during the coronavirus.
Where do you think Next and ASOS get their clothes made. Not in the UK. They get them made in places like India where there is child labour, child trafficking.
So, be realistic. Boohoo have made one mistake contracting a supplier who subcontracted to an extremely dodgy company. Those that are jumping on this bandwagon have no morals nor ethics themselves. They are pretending to be ethical by putting the knife into Boohoo.
Let's remember, Boohoo have 40% of their clothes made in the UK. The majority of these are good, honest manufacturers who look after their employees. Do you want them to lose their jobs?
What about Boohoo employees? Do you want them to lose their jobs?
" No business is 100% perfect "
Indeed not ...but it appears that the level of imperfection is growing rapidly ...and the number of companies on the " naughty list" just gets longer and longer ..to the point here a scandal is just something almost everyone goes through at some point or other ....oh, today it's BooHoo
You are not telling me that when you have a Management Incentive Plan of £150 million and Mahmud Kamani could get £50m there aren't temptations to ....."put pressure on performance".. shall we say
The whole issue is fraught given the weighting of the Asian population in the area, leaving it wide open to exploitation. Cultural biases that should have remained in the 'homeland' are often imported, and often with those who are exploited having poor English and perhaps being poorly educated, and some perhaps being here illegally, makes it all the easier to occur.
Then why you don't short or you have already shorted?
Cheapshareboy - you're displaying your own greed now.
Yes no one is perfect but it s share is a sell regardless.
It's doesn't make it better by saying no one is perfect. Boohoo rating by me: Sell. Target: 100p.
No business is 100% perfect. Look at the banks who gave people mortgages without fully checking them, then sold them onto other institutions who went bankrupt. Look at the 2008 crash where USA banks, sold faulty investments by wrapping them together with one good investment and sold them on to banks and institutions including in the UK and they went bankrupt or lost millions. Recently banks have been found guilty of manipulating LIBOR, this is the interest rate banks lend to each other.
Next and ASOS won't be 100% perfect. They get clothes made abroad so please don't tell me they check those factories every day to see what the workers are being paid, child labour, human trafficking. Factory owners in places like India buy rural children from their parents who can't afford to keep them.
Boohoo have 40% of their manufacturing in the UK. The majority of those manufacturers are good, honest people. One bad apple has been found. That's the nature of greed. There are always human beings who will be too greedy. Look on this board to see examples of greed.
businesses are about profits and profits are about margins. I'm afraid businesses will do whatever they can to ensure margins are as profitable as possible. If they do anything else then the folks running them aren't doing their jobs properly. Clearly there are lines which shouldn't be crossed but assuming the cross the t's and dot the i's (procedure), then they will be back in business. that doesn't mean the overhang will disappear overnight not will it stop any further bad news from appearing. but essentially, if they are seen to be doing the right thing, then the company will be fine.
That is a good post People Power. People seem happy to purchase imports where people have been exploited with low pay and then it all kicks off when it happens in the UK.
I hope this actually raises awareness of exploitative practices globally not just in the UK. Regardless if any blame can be apportioned to Boohoo or not.
Next and ASOS valuations are a joke!!!
Who buys their wares anyway? Anytime I go into a Next store, there’s hardly any trade going on.
I must be missing something:((
Seems a bit rich ASOS complaint. In march they were accused of not giving their workforce enough room and denying them toilet breaks.
Next and ASOS have suspended selling Boohoo items until the investigation has been completed.
Looks to me like Next and ASOS are using this to say we're the good guys and Boohoo is the bad guy. Next and ASOS are trying to make money out of this for themselves. They have all been jealous of Boohoo's success.
Where do you think Next and ASOS get their clothes made. Not in the UK. They get them made in places like India where there is child labour.
So come on be realistic. Boohoo have made one mistake contracting a supplier who subcontracted to an extremely dodgy company.