Boohoo has moved to quickly shoot down rumors that the online clothing retailer and its suppliers are facing a US import ban due to alleged slave labour allegations.
Sky News online today made the allegations its leading headline in early morning news claiming that US Customs and Border Protection ‘has seen enough’ evidence in order to launch an investigation.
However, Boohoo has strongly denied such an occurrence and is not aware of any investigation from the respective party.
In a statement it added that it is confident that it is raising its standards which will meet requirements across international markets:
“The Group is confident in the actions it is taking to ensure that all of its products meet the CBP criteria on preventing the product of forced labour entering the US (or any of its markets). boohoo continues to fulfil orders to customers in the US across all of its brands. The Group will work with any competent authority to provide assurance that products from its supply chain meet the required standard.”Boohoo response to media commentary
The share price of Boohoo slumped following the media commentary but has since eased up on its falls, recovering somewhat to a 4% loss for the day.