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.
Philip Plickert
economic correspondent based in London.
F. A. Z.in early July, the Boohoo-price was 400 Pence, since the disclosure of the report by the "Sunday Times" of 5. July he broke the fall-like. On Monday, the share price fell again by 14 percent to 240 Pence. The value of the in 2006 founded the fashion retailer, went, 2014, the stock market, and then rapidly grew to over £ 5 billion valuation, has shrunk since the beginning of July to 40 percent. Almost 2 billion pound stock market value has been wiped out.
The major shareholder, Standard Life Aberdeen, one of the most important asset managers in Britain, has passed from Boohoo because of the negative reports. Fashion retailers such as Next, Asos, Very and Argos have taken Boohoo-products from the range. The British company wants to Finance an independent investigation of the allegations, denies, however, to be actively involved in minimum wage violations involved. In the factories, and pack in Leicester are operated according to various Reports real often, only hourly wages of 3 to 4 pounds paid far below the legal Minimum of 8,72 pounds.
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 the case of a sub-contractor 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, which described working conditions were "totally unacceptable".
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