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Boohoo shares slide on likely US import ban report

SHARES in UK online clothes retailer Boohoo slid Tuesday (2) on a report that it could face a US import ban over labour abuse allegations, which the firm has denied.

According to a Sky News report, US Customs and Border Protection had launched a probe into allegations from Liberty Shared, a non-governmental organisation which campaigns against modern-day slavery.


The report sent Boohoo shares sliding 4.6 per cent to 328.90 pence in afternoon London trading and follows other allegations of staff mistreatment by the group.

However, Boohoo said in an official statement to that it was not aware of any investigation by US authorities.

"The group is confident in the actions it is taking to ensure that all of its products meet the US Customs and Border Protection criteria on preventing the product of forced labour entering the US, or any of its markets," it said.

The firm said it continues to fulfil orders to forex brokers in south africa customers in the US across all of its brands and said it would work with any competent authority to provide assurance that products from its supply chain meet the required standards.

Boohoo added that it had worked closely with UK enforcement bodies over the last eight months over other matters relating to alleged mistreatment.

Boohoo was last year hit by allegations that one of its suppliers in England paid workers much less than the national minimum wage.

It has also been investigating a report that its suppliers were underpaying workers in Pakistan.

On the US ban report, it said: "If the group were to discover any suggestion of modern-day slavery it would immediately disclose this to the relevant authorities."

Boohoo has been in the headlines recently owing to its purchase of brands belonging to collapsed UK retail giants.

Since the start of the year, it has bought key fashion brands Burton, Wallis and Dorothy Perkins from Arcadia.

It has also snapped up the intellectual property assets of collapsed UK department store Debenhams, allowing it to use its brand going forward.

Both Arcadia and Debenhams had struggled to compete with online fashion brands like Boohoo long before the Covid pandemic and subsequent lockdowns forced their eventual collapse.

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Frasers slams Debenhams over £222 million pay scheme

Highlights

  • Debenhams pushes ahead with executive pay scheme worth up to £222 m without shareholder approval.
  • CEO Dan Finley could earn up to £148 m if share price reaches £3 over next five years.
  • Frasers Group, holding 29.7 per cent stake, calls move "utterly disgraceful" amid long-running corporate tussle.
Struggling British online fashion retailer Debenhams has sparked outrage from its biggest investor after deciding to implement a new executive pay scheme worth up to £222 million without seeking shareholder approval.

Frasers Group, which holds a 29.7 percent stake in Debenhams, condemned the move through its chief financial officer Chris Wootton on Thursday. "Typical corporate governance from them, utterly disgraceful," Wootton said, criticising the retailer's decision to bypass investors.

Under the new incentive scheme, Debenhams CEO Dan Finley could earn up to £148 m and CFO Phil Ellis up to £14.8 m if the company's share price hits £3 over the next five years. Debenhams shares were trading at 22.25 pence on Thursday, down 3.3 percent.

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