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Boohoo shares surge after it outlines actions to fix supply chain issues following independent investigation

The independent Boohoo supply chain review from Aison Levitt QC has been published today and confirms multiple failings in Boohooo's Leicester supply chain and overall governance.

Boohoo noted that while the review does make for 'uncomfortable reading', it is supportive of the recommendations made and plans to implement them in full.

This includes tightening up its corporate governance with two new non-exec directors, consolidating its approved supplier list and better supporting workers' rights.

"Today we publish Ms Levitt's Independent Review in full. This has identified significant and clearly unacceptable issues in our supply chain, and the steps we had taken to address them, but it is clear that we need to go further and faster to improve our governance, oversight and compliance. As a result, the Group is implementing necessary enhancements to its supplier audit and compliance procedures, and the Board's oversight of these matters will increase significantly."

John Lyttle, Group CEO of Boohoo

While there were a evidently a multitude of red flags, Boohoo noted that Ms Levitt was satisfied it did not 'deliberately allow poor conditions and low pay to exist within its supply chain'.

The markets appeared to take confidence from the 6-point response from Boohoo and its commitment to addressing the issue.

Boohoo's share price opened up 20% higher before settling down a little to 366p.

373p now. At its peak was about 410p. I think this will reach a new all-time high later this month. Its clever from Boo, they've got the 'bad news' out of the way which is actually good news. 

Then they'll show monster sales and won't get blasted for it as they will say not exploiting people and fixing issues.

 

No stopping this one now. Initially forgot that the buyers of what it sells won't care / probably would never have read this negative coverage. 

Results will be a rocket. 

Bought on the market crash a few days ago, its a keeper - 450p possible at end of month.

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