Boohoo has halted payments to some suppliers, raising concerns about clothing quality.
- Involvement includes around 10 of the estimated 500 global manufacturers.
- A marked increase in faulty goods has prompted Boohoo to take action.
- Boohoo is engaging with suppliers to improve the situation.
- The company’s revenue has also declined, affected by market conditions.
Boohoo has taken the step of withholding payments from a select group of suppliers, citing issues with poor clothing quality. This development involves approximately 10 manufacturers out of an estimated total of 500 operating globally, as reported by The Telegraph.
A source detailed that Boohoo is currently undertaking a “three-month programme of work” aimed at improving quality standards, in response to a noticeable uptick in defective products from a limited number of suppliers. The faulty goods scenario has allowed Boohoo to invoke contractual rights to withhold payments.
Boohoo’s spokesperson remarked on their commitment to quality, stating, “Boohoo Group is committed to delivering product of the highest quality to its customers. We are currently talking with a very small number of supplier partners where, unfortunately, the product supplied was not of a high enough standard. We are working collaboratively with them to remedy the situation and ensure this does not happen again.” Such efforts are essential to maintaining Boohoo’s market position and customer satisfaction.
Concurrently, Boohoo Group has reported a revenue decline. For the year ending 29 February 2024, the company experienced a 17% drop in revenue, obtaining £1.46 billion, a downturn attributed to challenging market conditions. Boohoo’s CEO, John Lyttle, remarked, “Despite difficult market conditions, caused by high levels of inflation and weakened consumer demand, we made continued progress in the year.”
Boohoo’s actions highlight its resolve to address quality issues while navigating through tough market conditions.
