Posted: 7:35 AM EDT October 20, 2020 | Updated: 7:35 a.m. EDT, October 20, 2020
More than £ 800million has been wiped from Boohoo’s stock market value after it was confirmed that it was ditched by its auditor following revelations about the appalling treatment of workers at the Leicester factory
The online fashion giant told investors it was looking for a new accountant after learning that PwC was planning to step down due to fears of damage to its reputation
Shares affected: Boohoo told investors he was looking for a new accountant after reporting that PwC intended to step down due to fears of damage to his reputation
Recent explosive report by Alison Levitt QC details ‘excessive’ hours, life-threatening conditions, and illegally low wages in parts of Boohoo’s supply chain
Levitt discovered that co-founder Mahmud Kamani had a « social and family relationship » with the owners of the two companies at the center of the factory’s allegations
But he also admitted that the beancounter didn’t show up for the new audit contract – meaning PwC has effectively resigned, having checked Boohoo’s books since 2014
A spokesperson for Boohoo declined to comment on reports that PwC informed the company of its intention to quit
The row over the conditions of the sweatshop conditions at Boohoo’s factories first erupted in July after reports in this newspaper and the Sunday Times alleged that the company’s factories were not tracking social distancing and only paid £ 350 per hour
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World news – UK – £ 800million wiped out Boohoo as auditor resigns over workshops scandal
