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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 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.

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