Watched an interesting Dispatches programme on Channel 4 recently called - Undercover Britain's Cheap Clothes. As well as featuring interviews with some typical customers of on line retailers such as Boohoo, Miss Guided, New Look & River Island, their reporter was employed at a few UK factories where clothes were being made for these on line retailers. It seemed to be routine to pay wage rates of £3 to £3.50 and totally disregard living wage regulations and health and safety issues.

While in next weeks second part Dispatches goes undercover to investigate working conditions inside the some of the clothing warehouses in Britain that service our online orders, although I don't know if this will feature Boohoo specifically, 

Must admit I am a bit surprised there hasn't been any reaction in the shares and may be it is all hot air as all the retailers featured claimed to have high standard and had stopped using the suppliers that used these factories, so Boohoo may continue to roar ahead regardless. However,  if Sports Direct got hauled over the coals for something similar, why not these other on line & high street names? Funnily enough Boo Hoo's market cap is now not far off that of Sports Direct.

So holders might want to watch these programmes and make their own minds up about how comfortable they are with the business model. Just bringing it to peoples attention as it is a highly rated stock which could therefore be vulnerable to bad publicity such as this.

For the record I have not owned, do not own or have any short positions in any any of the shares mentioned.


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