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* Media report highlighted poor working conditions
* Supply chain review to be led by Alison Levitt QC
* Next, Zalando, Amazon delist Boohoo products
* Shares have lost a third of value this week
* Shares down 10% at 0723 GMT
(Adds detail, shares)
By James Davey
LONDON, July 8 (Reuters) - Online fashion retailer Boohoo
has commissioned an independent review of its supply chain in
Britain focused on areas including compliance with minimum wages
and coronavirus rules after a damaging media report about
working conditions.
Boohoo shares have lost about a third of their
value since 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 pounds ($4.39) an hour.
Meanwhile, Labour Behind the Label, which campaigns for
workers' right, said last week it had received reports of
"workers being forced to come into work while sick with
COVID-19, workers wishing to isolate being denied pay, (and)
factories operating illegally throughout lockdown".
Factory conditions in Asia of suppliers to British fast
fashion retailers have been in the spotlight for more than a
decade, but in recent years the exploitation of low-paid workers
in factories in Britain has also come to light.
Shares in Boohoo were down 10% at 0723 GMT on Wednesday
after retailers Next, Zalando and Amazon
delisted its products from their websites.
"We are deeply shocked by the recent allegations about the
Leicester garment industry," CEO John Lyttle said on Wednesday
after announcing the review.
This will focus on supplier compliance with minimum wage
regulations, compliance with COVID-19 regulations, working hours
and record keeping and right to work documentation and contracts
of employment, Boohoo said.
The review is being led by senior lawyer Alison Levitt with
the board represented by Brian Small, senior independent
director of Boohoo, which sells own-brand clothing, shoes and
accessories targeted at 16 to 40-year-olds.
"We wish to reiterate how seriously we are taking these
matters and we will not hesitate to terminate any relationships
where non-compliance with our Code of Conduct is found," said
Lyttle.
Boohoo has grown rapidly since it was founded by Mahmud
Kamani and Carol Kane in Manchester in 2006 and at Friday's
market close its market value was nearly 5 billion pounds, more
than double that of Marks & Spencer, Britain's largest
clothing retailer by sales value.
The firm said it was also accelerating its independent third
party supply chain review with ethical audit and compliance
specialists, Verisio and Bureau Veritas, and would invest 10
million pounds to tackle the problem.
($1 = 0.7972 pounds)
(Reporting by James Davey; Editing by Kate Holton and Alexander
Smith)
