(Alliance News) - Quiz PLC on Monday said it is investigating a Leicester-based supplier which is alleged to have paid staff as little as GBP3 an hour.
The Times on Saturday reported that an undercover journalist was told by bosses at the factory that she must perform two days of unpaid work before even advancing to the GBP3 per hour rate.
The fashion brand said it believes that one of its Leicester-based suppliers has used a subcontractor at the centre of allegations over breaches to the UK National Living Wage.
"The group is currently investigating the reported allegations, which if found to be accurate are totally unacceptable. From our initial review, we believe that one of Quiz's suppliers based in Leicester has used a sub-contractor in direct contravention of a previous instruction from Quiz. It is this sub-contractor that is subject of the National Living Wage complaint. Quiz has immediately suspended activity with the supplier in question pending further investigation," Quiz explained.
The news comes hot-on-the-heels of peer Boohoo Group PLC facing similar allegations. The online retailer on Wednesday said it has launched an independent review of its UK supply chain, but Boohoo shares have dropped 42% from their 2020 peak in June in response.
Quiz shares were 10% lower at 6.08 pence each in London on Monday morning. The stock is down 66% so far in 2020.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Boohoo (BOO)
Quiz (QUIZ)