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Birmingham Post
Birmingham Post
Business
Jon Robinson

Boohoo publishes final Sir Brian Leveson report as top judge says fashion giant still faces challenges

Fashion giant Boohoo has published Sir Brian Leveson's fifth and final report into its Agenda for Change programme.

The review tracked the progress of the Manchester-headquartered company against the recommendations laid out by Alison Levitt QC.

Sir Brian was first appointed to provide oversight of the group’s Agenda for Change programme in November 2020.

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Boohoo had launched the scheme after allegations emerged of ill treatment of staff at its Leicester warehouse in September that same year.

In an independent review, Senior lawyer Alison Levitt QC said the fast fashion chain knew about “serious issues” with the treatment of factory workers in Leicester last December, but failed to move quickly enough to do anything about it.

The fourth report was published in September 2021 and assessed Boohoo’s work in its supply chain, responsible purchasing practices, sustainability, ethical compliance as well as training programmes related to modern slavery.

In his fifth and final report, Sir Brian said: "I do not pretend that the conclusion of the Agenda for Change programme and its transfer into business as usual represents the completion of each aspect of each recommendation made in the review.

"Many have been completed; others are in progress but still require continued effort to bring to fruition: this is not the least true in respect of the ambitious IT programmes that have been undertaken and are in the process of implementation and in relation to the group’s ambition for Thurmaston Lane as a centre of excellence for garment manufacture in Leicester.

"Furthermore, even if all the recommendations had been completed (or when they are), it cannot be said that it would represent the end of the process.

"I have no doubt that there will continue to be challenges and difficulties along the way and Boohoo must be prepared to demonstrate that, in relation to each aspect of its business, it has exercised due diligence to ensure that legal and ethical standards have been maintained by all both in the business itself or, just as important, in its supply chain.

"In particular, continued and continual attention to the way in which those in the supply chain are manufacturing garments will be essential and, should lapses become apparent, necessary steps taken to enforce its Code of Conduct.

"In the last 17 months, Boohoo has travelled a considerable distance in relation to most (if not all) aspects of corporate governance and its business model while, at the same time, addressing the same issues concerned with the pandemic as have been faced by society in general.

"It has also continued to manufacture and supply clothing, adjusting its offer and style to the new reality of working from home.

"At the same time, Boohoo has had to deal with the oversight which it put in place at the start of the process.

"That has involved regular interaction with KPMG offering advice and validation of the work done, with me and with my team of enforcement specialists (led by Tim Godwin OBE) and lawyers (ledby Louis Browne QC).

"All this has required both energy and agility and I must express my thanks for the assistance I have been given from all corners of the business, from KPMG (without whose assistance I do not believe I would have been able effectively to discharge the oversight responsibilities that I accepted) and from the teams that worked to me.

"A very real tribute must also be paid both to the senior management and all those involved in visualising, articulating, promoting and implementing the Agenda for Change while, at the same time, running the business.

"That so much has been achieved is a testament to them and to the original determination and support expressed and reinforced by the chairman, Mahmud Kamani, the chief executive, John Lyttle and the board.

"Running through the Levitt Review is the observation that Boohoo had failed to appreciate that running a great company required social responsibility as well as growth.

"That message has been heard, understood and is in the course of being remedied, with very substantial steps already taken to recognise the wider picture beyond commercial success.

"As this transformation programme moves into business as usual, I trust that the dynamism which has been demonstrated throughout Agenda for Change will continue and wish the group success."

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