Boohoo, the British fashion giant, has announced plans for 5,000 new jobs in the UK within the next five-years as part of a new investment plan.
The group will invest 500 million pounds into the strategy, which will include the creation of additional warehouse space and improved technologies to bolster its profits. Boohoo purchased Debenhams’ online store in January and the Dorothy Perkins, Wallis, and Burton brands from the defunct Arcadia empire in February.
In May, Boohoo reported a 41 percent increase in full-year revenue to 1.745 billion pounds, while adjusted EBITDA increased 37 percent to 173.6 million pounds. With around half of the company’s sales coming from overseas markets, such as Australia and the US, Manchester-based Boohoo enjoys a growing global appeal.
But the online-only retailer has also faced heavy criticism in recent years over the treatment of workers in its UK supply chain. According to a Sunday Times investigation, certain factories in Leicester which supply clothing to Boohoo had been accused of making employees sick with Covid-19 while they worked and only paying 3.50 Pounds an hour.
Boohoo launched an independent review of its supply chain which found “many failings”, leading to the group launching its Agenda for Change programme in which it set out six steps to enhance its supplier audit and compliance procedures. These standards are expected of suppliers and all concerns raised by Sky News will be investigated immediately.
“Since last year’s independent review, the group has repeatedly stated its determination in rebuilding a garment industry in Leicester with a robust, fair and transparent supply chain.”