The Boohoo share price is up sharply today as investors react to testimony by the company’s founder about its production...
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Boohoo
Boohoo is an online fashion retailer founded by Mahmood Kamani and Carol Kane in 2006. The brand sells fashion clothes under its brand and other brands aimed at customers between 16 and 30 years.
The company has seen its sales grow over the years given its affordable prices, which appeal to young people.
The fashion retailer has also acquired numerous brands from defunct high-street retailers acquired over the years as customer preferences shifted to online shopping.
As a result, the company has been blamed for contributing to the fast fashion trend that has led to significant waste in the global fashion industry.
Boohoo’s low-priced fashion items and clothes are designed to be worn a few times and then discarded as fashion trends keep shifting.
The fashion retailer’s stock price came under intense pressure in mid-2020 after an investigation by the Sunday Times found that the company’s suppliers were underpaying their workers.
The investigation revealed that some of Boohoo’s UK workers were earning as little as £3.50 (US$4.37) an hour, which was way below the government’s minimum wage requirement of £8.91 per hour.
Boohoo has since cut off numerous suppliers and has promised to ensure that all its products are manufactured in facilities with good conditions.
However, the fashion retailer’s share price has continued to suffer and is down 45.76% since January.
However, despite its shares falling, its business has not suffered as much as other UK retailers as it continues to outperform its peers.
