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Summary
- Boohoo has appointed retired judge Sir Brian Leveson for the independent supervision of the brand’s supply chain
- Sir Brian Leveson will report to the Boohoo’s board of management and will publish an overview report about the company’s progress
In a move to enhance its supply chain and bring in better business practices, the UK-based online fashion retailer Boohoo Group Plc (LON: BOO) has appointed retired judge Sir Brian Leveson for the independent supervision of the group.
In his new role, Sir Brian will report to the Boohoo’s board of management and will publish an overview report about the company’s progress under the Agenda for Change programme. The company had hired KPMG earlier this month to support the programme.
Mahmud Kamani, the group executive chairman at Boohoo, said the company is happy about the progress it has made till date after launching the ‘Agenda for Change’ programme in September.
Kamani added that the company is devoted to this programme and with Sir Brian on board, the firm will accelerate more with his profound expertise and the programme will see further transparency that will enable the online fashion brand to enhance its global offerings.
Meanwhile, Sir Brian stressed that Boohoo has acknowledged that changes are required to make in its supply chain that will enable it to operate fully under the law and uphold the standards of ethical trading.
Sir Brian is known for leading a probe into the UK’s press standard in 2011-12 after the then media mogul Rupert Murdoch’s now-extinct News of the World tabloid accepted the charges of hacking millions of phones in order to disseminate salacious news stories.
Boohoo sells a range of women and men's clothing, including fashion accessories, beauty items and shoes. The group targets people who are between the age of 16 to 40.
In September, the digital fashion retailer had accepted all the suggestions of an independent assessment conducted by Alison Levitt QC, which had considered whether the accusations of poor working terms and low salary at the firm are well founded and how it supervises its Leicester supply franchise. Levitt’s review found many loopholes in the online fashion retailer’s supply chain. It suggested upgrades to Boohoo’s corporate governance and monitoring practices.
In July, Boohoo factories were alleged of making its employees work on the premises, despite having coronavirus infection. A report by ‘Labour Behind the Label’ stated that the clothing factories, which act as suppliers to all big brands, were operational during the national lockdown and they did not abide by the social distancing guidelines.
Conclusion
Considering this latest development, many analysts feel that the board of the digital fashion firm will move in the right direction regarding addressing the corporate governing issues about supply chain, business practices and other relevant operating amendments.
The appointment of Sir Brian will be welcomed by the shareholders as the fashion firm seeks to bring fundamental changes in its operations and culture. Moreover, transparency in the supply chain will uplift the company’s offering.
Similarly, KPMG’s appointment as an independent expert will also bring additional expertise and resources to the process. This would streamline the online fashion brand’s offerings more transparently in the long run.
