There are a half horror weeks for shareholders in the UK were cheap-fashion manufacturer, Boohoo, after a newspaper revealed a report of illegally low wages, in a Boohoo-sub-contractors in Leicester. Not only the damage of the image is large, the whole business model of "Fast Fashion"-the online retailer that sells very cheap clothing, especially on young women, is in question.
economic correspondent based in London.
in early July, the Boohoo-price was 400 Pence, since the disclosure of the report by the "Sunday Times" he broke in fall-like. On Monday, the share price fell again by 14 percent to 240 Pence. The value of the fashion retailer, which went in 2012 to the stock exchange, and then rapidly grew, shrunk since the beginning of July, to 40 percent. Almost 2 billion pound stock market value has been wiped out.
Now, a second, similar case on the horizon: the shares of the fashion retailer Quiz from Glasgow is according to a report on minimum wage violations in Leicester, to decline. On Monday the paper launched with 21 percent, then recovered partially to 5 percent. Quiz-the chief Tarak Ramzan was "extremely concerned" about the report.BOOHOO GROUP PLC LS -,01 -- -- (--) London tradegate lang & Schwarz in Frankfurt, Stuttgart 1T 1W 3M 1J 3J 5J To the detail view BOOHOO GROUP PLC LS -,01 -- -- (--) London tradegate lang & Schwarz in Frankfurt, Stuttgart 1T 1W 3M 1J 3J 5J For detail view Date Of Update: 13 July 2020, 06:20