More than £800m wiped off Boohoo’s stockmarket value as auditor quits following sweatshop scandal
More than £800million was wiped off Boohoo’s stockmarket value after it confirmed it has been ditched by its auditor following revelations about the appalling treatment of Leicester factory workers.
The online fashion giant told investors it is looking for a new bookkeeper after reports that PwC intended to resign due to concerns about damage to its reputation.
Following the announcement shares tumbled nearly 19.5 per cent, or 61.6p, to 254p.
Shares hit: Boohoo has told investors it is looking for a new bookkeeper after reports that PwC intended to resign due to concerns about damage to its reputation
A recent bombshell report by Alison Levitt QC detailed ‘excessive’ hours, life-threatening conditions and illegally low pay across parts of Boohoo’s supply chain.
Levitt found that co-founder Mahmud Kamani had ‘a social and family relationship’ with the owners of the two companies at the centre of the factory allegations.
Yesterday the fast-fashion retailer insisted PwC was still auditor ‘at this time’.
But it also admitted the beancounter has not put itself forward for the new auditing contract – meaning PwC has effectively resigned, after vetting Boohoo’s books since 2014.
A spokesman for Boohoo declined to comment on reports that PwC had told the company it planned to resign.
Such a move would have to be announced to the stock market.
PwC also declined to comment.
The row over sweatshop conditions at Boohoo’s factories first erupted in July after reports in this newspaper and the Sunday Times alleged the firm’s factories were failing to follow social distancing and paying staff as little as £3.50 per hour.
The minimum wage for workers aged 25 and over is £8.72 an hour.