Member Info for Peoplepower1

boohoo Group plc is a multi-brand online fashion retailer which targets “fashion-conscious 16 to 40 year olds in the UK and internationally”. It was founded in 2006 by Mahmud Kamani and Carol Kane.

Both founders have extensive experience of the fashion industry. Ms. Kane studied fashion before getting her first job with a company producing clothing for the British high street. Mahmud Kamani’s father arrived in the UK as a refugee from Kenya in the 1960s. The Chairman’s father supported his family by selling handbags on a market stall before setting up Pinstripe Clothing in 1989. Mahmud Kamani has described his father’s journey as “a case of rags to riches” and
emphasised that he is “from a community that works hard”.

Mr Kamani’s and Ms Kane’s paths first crossed at Pinstripe in 1993, when he interviewed her for a job. She joined Pinstripe and they have worked together in the fashion industry for over 25 years. Pinstripe was a wholesale textile business which supplied brands such as New Look and Primark.

Ms Kane told us that “We were the middlemen. We were suppliers, working with factories and selling on”.

There came a point at which she and Mr Kamani decided to move away from a purely wholesale business model.

On 22nd July 2020, I and my team visited Manchester. Some of the Boohoo brands have Headquarters buildings there: we were taken on tours of Boohoo, PrettyLittleThing, BoohooMAN and Nasty Gal. We were welcomed warmly and introduced to the Chairman, the CEO and other Board members. The CEO, John Lyttle, said to us at the outset that he wanted it to be clear that Boohoo had nothing to hide and that if they had done anything wrong, they wanted to know so that they could put it right. I was told that we could see anything we wanted and we were encouraged to speak to the employees as we were shown around the various buildings. It was clear to us that this is an organisation which prides itself on its friendly and informal atmosphere: all the employees know the Chairman and call him ‘Mahmud’, despite
his enormous wealth and power. We were told more than once that ‘Carol’ is immensely easy to talk to and has an open door policy. Board members and members of the Senior Management team consistently used the word ‘colleague’ to describe those who are in fact their employees, all of whom are given shares in the company. We were struck by the energy and enthusiasm of the staff and by the impression that this was a fun and rewarding place to work. Many people
mentioned the fabulous parties which Boohoo holds for its staff and suppliers; we were told the Chairman always attends and is usually ‘mobbed’ by staff wanting to talk to him.

On 12th August 2020, we instructed19 a team of forensic accountants from Grant Thornton UK LLP. Whilst Boohoo was responsible for their fees, the Board agreed that Grant Thornton would take their instructions from me and would answer only to me. Boohoo has not known until now the precise detail of what I asked them to do.

There is no evidence that Boohoo has committed any criminal offences.

I am satisfied that Boohoo did not deliberately allow poor conditions and low pay to exist within its supply chain, nor did it intentionally profit from them. I do not accept that Boohoo’s business model is founded on exploiting workers in Leicester.

Inaction by the authorities has contributed significantly to the deficiencies. Legislation is not merely a system for regulating society but also the mechanism by which society’s values and priorities are communicated. If the law is not enforced, this sends a clear message that the violations are not important and the people affected do not matter.

I should make it clear that there is ample evidence that the steps which Boohoo is now taking in relation to remedying problems in its Leicester supply chain had been embarked on nearly a year ago. They were a product of processes it had itself put in place and not just a reaction to the negative publicity in July and August 2020.

Whether my report is published or not will be for Boohoo to decide, but it is my hope that they will recognise that whilst some of my conclusions will make uncomfortable reading for them, an organisation which is sincere about transparency may sometimes have to allow others to speak truth unto power. It is my view that if Boohoo publishes my report that will be the clearest evidence that it is sincere in its wish to understand the nature and extent of the problems and
serious in its commitment to becoming part of the solution. There is no reason why Boohoo and Leicester should not flourish together.

The problems in Leicester are complex and of long-standing and Boohoo is not solely to blame; others too are responsible for not having gripped this over many years. It has been alleged that Boohoo’s business model is dependent on the profits which can be made from the deliberate exploitation of the Leicester supply chain, safe in the knowledge that there will be little scrutiny. I do not accept this; I am satisfied that there are sound legitimate business reasons for Boohoo using Leicester to manufacture clothing but for this to be the case going forwards it may require a change of approach, not least in terms of how Boohoo educates and trains its buyers.

I have seen material5 showing that, following the publication of the Sunday Times article, Boohoo’s Chief Executive, John Lyttle, and other Board members spoke privately but with passion about the importance of leaving “no stone unturned” in this investigation and their commitment to being “a good corporate citizen”.

Boohoo should also be congratulated for the revenue it has generated for the UK and for the fact that, unlike many of its competitors, it has continued to support UK manufacturing, particularly in Leicester.

There is much to like and admire about Boohoo. The entrepreneurial talent which led Mahmud Kamani and Carol Kane to start this hugely successful company has been the engine for the creation of many jobs at its Manchester Headquarters and its Burnley distribution centre. Both Board members and employees have emphasised that they regard the Boohoo workforce as “family” and those to whom I have spoken all plainly felt proud of working for Boohoo. The Manchester Headquarters, which I and my team visited on 22nd July 2020, felt vibrant and energetic in spite of the social distancing restrictions imposed on workplaces as a result of the coronavirus pandemic.

Whilst this Review was commissioned and has been paid for by Boohoo, I was only prepared to undertake it on the basis that the company agreed that I could be truly independent in my methods, findings and conclusions. Boohoo has not been my client in the conventional sense; for example, I have not been given instructions by them other than during the process of formulating the Terms of Reference. It was agreed at the outset that all fees would be settled before I delivered my final report; that agreement has been honoured by Boohoo. When additional resources have been requested, Boohoo has invariably allowed them. In short, Boohoo has devoted substantial financial resource to this Independent Review and insofar as that demonstrates a commitment to it, it is my hope that that will be recognised and that they will be given credit for it.

lokomo - there has been no previous Finance Director. Neil Catto has been the Finance Director for Boohoo for years and years. He is a brilliant Finance Director.

This is simply more background noise to fill newspapers and nothing else.

Looks like more old news being replayed.

arudge - sounds like PwC are more worried about their own reputation than Boohoo's.

OracleofOldham - that's the beauty of Boohoo. They've never expanded too quickly. Check out each website for their 9 different brands to see how excellent they are at what they do.

Who are we?

From Manchester’s best kept fashion secret to one of the fastest growing international etailers, boohoo group has quickly evolved into a global fashion leader of its generation encompassing boohoo, boohooMAN, PrettyLittleThing, NastyGal, MissPAP, Karen Millen, Coast, Oasis, Warehouse.

Combining cutting-edge design with an affordable price tag, we’ve been pushing boundaries for the past thirteen years to bring you all the latest looks for less.

We are the global fashion retailer of our generation, bringing trends straight off the catwalk and street to our customers wardrobe!

We are a leading online fashion retail group. Our brands, boohoo, boohooMAN, PrettyLittleThing MissPap, Nasty Gal, Karen Millen, Coast, Oasis and Warehouse; design, source, market and sell clothing, shoes, accessories and beauty products targeted at 16-30 year old consumers. The speed and agility of the group ensures it is first to market with the latest on-trend styles and fashion. Products are designed, sourced, largely in the UK, and subsequently distributed globally from a central UK warehouse.

The group sells products to customers in almost every country in the world, with a strong presence in the UK, US, Europe and Australia.

Founded in Manchester in 2006, boohoo group is an inclusive and innovative brand targeting young, value-orientated customers. For over 10 years, boohoo group has been pushing boundaries to bring its customers up-to-date and inspirational fashion, 24/7. Boohoo group has grown rapidly in the UK and internationally, and now has over five million customers.

We're on a journey, taking the best people with us and so are looking for an experienced Merchandiser to join us! Feel the buzz and excitement working with the brains behind one of the fastest growing international retailers. Responsible for making sure the product sells the best, most profitably, our Merchandising team are the self-proclaimed pioneers of the test and repeat model. Liaising closely with other departments such as buying, working as a Merchandiser gives you opportunity to have a direct impact for one of the fastest growing international retailers!