(Bloomberg) — Boohoo Group Plc ignored warnings about significant labor violations at U.K. garment suppliers, according to an independent review that cleared the fashion retailer of direct involvement in any abuses.
Shares in Boohoo rose as much as 21% Friday, partially recovering from a stock slump that began in June. Investors focused on the report’s conclusion that Boohoo didn’t deliberately allow the conditions for workers to be underpaid and that its business model isn’t based on exploitation.
In the review, Alison Levitt, a lawyer and former U.K. public prosecutor, found evidence of suppliers paying less than minimum wage and skimping on safety precautions in Leicester amid a flareup of Covid-19. She said there was no evidence Boohoo was directly involved, however. The company pledged to fight problems at suppliers by improving its auditing.