Fast fashion retailer Boohoo has said it will investigate one of its suppliers following reports that staff are earning less than the minimum wage amid unsafe working conditions.
The Sunday Times reported that workers at Jaswal Fashions in Leicester could expect to be paid £3.50 an hour.
It also saw little evidence of measures to stop the spread of coronavirus at a time when Leicester is in lockdown.
Boohoo said if the report was true, the conditions were “totally unacceptable”.
The company’s share price tumbled by nearly 10% to 350.08p following the expose.
Jaswal Fashions appears to make clothes for the Nasty Gal label, which is owned by Boohoo.
Boohoo said that Jaswal was not one of its declared suppliers and was no longer trading as a garment-maker.
It said it appeared that a different firm is using Jaswal’s former premises and “we are currently trying to establish the identity