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So you blame the suppliers and think Boo are blameless?.After being in the Rag trade for years,do you think they really believed that the prices they were paying were viable for the suppliers?
pedro61 - I think it's too easy to blame Boohoo for everything. The suppliers were in the rag trade for years too.
I do not apportion all the blame on Boo as that would be unfair.But blame should be apportioned on Boo,to what extent I do not really know.But the company knew the price levels that were viable for the suppliers as it does not take much working out.But the suppliers were in a bad position in that if they refused their company would go under.On the other hand Boo were making multi millions out of it.
pedro also posts on "take a break", Daily Mail on line and those other online websites where if you scroll down and find the comments box, there are usually some upstanding members of the community who like to share their opinion, irrespective of if said opinion adds value, has merit or is founded in any research.....
pedro61 - there were and are suppliers in Leicester who make a profit, pay their workers properly and treat their workers fairly. Something like a third of suppliers in Leicester do this.
Those are really deplorable figures to hear.It is a cesspit environment of exploitation that needs sorting out.This is the year 2021.
pedro61 - and that's what Boohoo is doing. Boohoo is making sure all its suppliers pay their workers properly and treat their workers fairly.
But no one seems to believe what Boo are claiming, I'm here only to try and make a few quid but after 9 months of holding I'm really believe that something isn't right with this company, every few weeks another negative press story, the slave story isnt going away and we have to accept that, what else is going to come out? Buying Debenhams and Burton seems a good move but image and reputations last for a long time. I'm not selling out yet as sincerely hope the SP will return to the £3.70/80 and them I'm out for good
130% capital expenditure offset against tax in the year the cash is spent will go along way to push garment manufacturing into the 21 century. The future is obviously more machinery and less people just like every other industry. I expect production techniques in these Leicester factories hasn't changed since the middle of the last century.
Reppyr - it's not what Boohoo is claiming. It's what they are doing and have done.
Boohoo have gone well beyond what they need to do and they are continuing to do this.
You need to look at how long it took Primark and Nike to come back from bad press. It takes time. Shares take time and patience.
Time, patience and research are the greatest skills to learn when it comes to investing in shares.
Reppyrr - it took Primark, which is owned by Associated British Foods, 18 months for its share price to come back from the bad press that hit it in 2008 about subcontracting labour to child workers in India.
https://www.newidea.com.au/nike-sweatshops-the-truth-about-the-nike-factory-scandal
So where does Nike stand today?
According to the ethical clothing advocacy group Good On You, Nike is certified under the Fair Labor Association Workplace Code of Conduct.
But a 2018 report by the Clean Clothes Campaign, found that Adidas and Nike still pay “poverty” wages to workers.
The report called on both Nike and Adidas to commit to paying "living" wages (the amount of income needed to provide a decent standard of living) to its workers.
With an annual revenue of over $US30 billion it should be able to afford it.
Ethically there are good reasons not to invest in Boo.But talking about the investment case ,I can see the share price is very much overvalued if Boo start to have to pay a fair price for the garments then the advantage they have had will dissolve away and the growth rate could easily dissolve away too.On the p.e. ratio this company needs good growth to support the s.p.
Strongly suggest that anyone who is in this to make a lot of money in the short term either gives up or goes long. I'll say it again, obvs depends what you bought in at, but for big gains this share is a long or longer terms investment. What went before not now is, in a years time you won't recognise this company as BH / PLT, this is now Boo Hoo Group, the game has changed, Debs , Burtons, DP's will be big earners but it takes time. If you want to D/T then fill yer boots, for others who don't then give up on the day to day and the kids on here, go away and come back in 6 months, we will be in Sept and you will be seeing a spanking new Debenhams online Department Store rammed down your throats from all angles in the run up to Xmas with a whole array of sparkling Brands , the BH/PLT bling bling ugly duckling will be changing into a mature Swan appealing to the masses, failing that keep sticking pins in ones good self at the daily b*lls**t on here.
Morally poor company.Investment case poor as when Boo have to start justifying their prices to suppliers then their advantage has ended.
Pedro, morals, how long is a piece of string.
I am a supplier, we supply BH through various brands out of Asia, we pay a living wage, we make profit, some BH prices harder than others but this company is no longer a two trick brand pony, prices will NOT have to increase across the board, some may, some may not, today the biggest pressure on prices is not CMT cost, its fabric cost, due to situation with Xinjiang Chinese Cotton prices are rocketing, the Chinese are hoovering up cotton from around the World to mitigate this, if this continues then clothing and textile prices across the World will rise, in fact just this morning i have had discussions with a major online company about AW21 prices due to this. This maybe an issue for likes of Primark and lower end prices of BH Group but this is also why this company needs looking at differently now because volume Brands like Burtons, DP's and some of the Debs Brands will be far less sensitive to a small increase to offset this, the dynamics underneath the surface are not as black and white with the BH Group as they were with BH Leicester, i find the continued fixation with Leics and old BH fascinating, Rana Plaza over 1000 people killed, when was the last time you heard Primarks a**se still being held against the fire for it ????? , ok sure it was in 2013, mud sticks, well not in fashion, barely gets a mention. Morals really !!! how about we start with Apple having a moral responsibility to fight oppression in China ???
O.K. I get it.Morals are not important in the Rag trade or investing!
TCM yeah i get it, if you think the game you play on here makes a difference then yep it's perfect for it, i'll leave those far wiser than me to comment whether message boards impact on px.
Personally i make money elsewhere and only invest in stock market in companies within my industry that i can see are going places or as in the case of Asos were massively undervalued after CV crash.
Carry on D/T, can't possible see you are doing anything else given time your on here TCM, just wish you would do it without all the crap that you seem to think it needs to accomplish your goals.
the board were asked about cotton and said that the vast majority of the boohoo/ plt "trend brands" clothing is poly and not cotton
Always worth listening to the board
Boo pushing very very hard on social media atm!
Pedro, as i say how longs a piece of string ?
Lets take the moral high ground on sustainability, mean's you have to buy a pair of jeans using recycled fabric and washing in a waterless Ozone machine, paying a living wage to worker, ok job done.
Nope, what about the thread used for stitching it, what about the metal work used on it, what if the metal work studs and zips are made buy people who earn less than a living wage, what about the the people who work in the mill supplying the recycled fabric?? are they paid a living wage ?? or even min wage , what if there is a young kid in there sweeping up the bits of yarn off the floor because his mum works there and his dad works in Dubai, she cant leave him at home, what you gonna do ??? What about the people who transport the fabric to the factory or the truck driver who takes the finished goods to the port, the guys who unload the cartons onto the container to ship to UK , what about the cartons, what if the cartons are made in a unlicensed factory ?? how you going to police all of this ?? Now take a look around the room your in, add all of the above to all the stuff in that room and believe you me i've missed out loads, (eg the machines that sew the jeans, who makes them?) Even the keyboard you type on and the phone you use. Morals yep nice idea in reality we don't live in Utopia. BH def were not 100% clear of what was going on in Leics of course they had an idea and turned a blind eye but my God how long you going to hold there a**se to the fire for it, especially when they have now done so much to mitigate it !! Go roast someone else instead who are far worse, start with Apple or Samsung et al and Cobalt mining in Africa, that's just phones FFS!
Now that piece of string is just getting longer and longer.
Danl90 , always a pleasure, trust you're well, just to update you, specifically for Boohoo and PLT , printed poly and poly mix dresses set to comeback strongly this Summer as everyone ventures out, strong move towards casualwear and specifically denim smock dresses which currently are the fastest growing area, for the majority of the other BH Group Brands we wont see the very cheapest fabric used (polyester), this is deemed as base level, we may see a move to more mixed fibres to offset cotton increase but of course if demand in this sector increases Worldwide then so will yarn prices across the board. That said course this does not apply to menswear where polyester rarely darkens the door and cotton is King, we may see some impact on printed viscose reveres tho, Asos to continue with EcoVero version of Viscose which is much more environmentally friendly, so if you must buy viscose bbq shirt look out for EcoVero trade mark.
Of course the problem is widespread and not just isolated to a few cases such asBoo. But,that does not exonerate or excuse their behaviour and in my opinion the Boos of this world need to be made examples of,so as to act as a deterrent to others.Slavery did use to be part and parcel of our British society over 200 years ago ,it cannot have any place in our society today.I find it abhorrent and disgusting that humans can be treated in such a fashion.Its very easy to turn a blind eye to such things.
Yaaaaaaaaaaaaawnn. !!!
Green day finish tomorrow!
Pedro61 i really don't think that they were aware of actual specific slave labour to the extent you think.
To give an example of what's happened, i give you, the factory, an order of 1000pcs, you then take another 1000pcs from someone else, you are running late on order, so you give 500pcs of this to your mate down the road, he is using some form of what you would term slave labour, who is to blame for you giving 500ps to your mate, ME THE PERSON WHO GAVE YOU THE ORDER OR YOU THE FTY WHO TOOK ON TOO MUCH AND GAVE 500PCS TO YOUR SLAVE LABOUR MATE??
So i suspect that they new some sort of what we call jobbing out was going on but sorry i really don't believe that they new it was actual slave labour, the biggest compliance team can go over a fty to make sure he has enough capacity but they cannot sit on the door 24/7 to see he is not taking on more orders or giving orders out to his nasty mate.
So Pedro i ask you in all seriousness given the above what would you do to BH, given they were found to not be aware but to not have been as strict all system compliant as they should, even with the most strict supply chain abuses can occur, you cannot stop them, what then happens if factory is found out then rightly it is struck off, over night they lose all there business, serves them right.
Do you want MK to go to jail or the company to struck off ?? What do you actually want them to do to BH, because in a moral World you then have to do the same to everyone else, Rana Plaza over 1000 people died, Primark made goods in Rana Plaza !