// Boohoo hit with £118.5m lawsuit from IT contractor who claims to be the 3rd founder
// Richard Womack said he began working on Boohoo in 1998, offering IT consultancy services
// Womack said Boohoo co-founder Mahmud Kamani promised him a 10% share in February 2006
Boohoo is currently facing a £118.5 million lawsuit from IT contractor Richard Womack, who claims to be a third founder of the fashion ecommerce.
Womack brought the claim against Boohoo co-founder Mahmud Kamani, saying that he began working with Kamani in 1998, offering IT consultancy services, according to law firm JMW Solicitors.
Womack also said that Kamani promised him a 10 per cent share of Boohoo in February 2006, when the idea developed for a website that sells online clothing.
According to the lawsuit, Womack has worked for Kamani for two years without being paid, “building the infrastructure of the website, including developing bespoke stock management software” as part of the process, and created “the coding of the website, database, integrated stock lines, organised and bought equipment for photoshoots, decided the ‘look and feel’ of the website and chose the logo”.
Womack said he’s never received a single penny for his work on the Boohoo website and “it’s just not right”.
Meanwhile, Boohoo has remained positive about its business results as the group reported its total sales had surged 48 per cent to £856.9 million in April, while pre-tax profits grew by 38 per cent to £59.9 million.
Boohoo was valued at £560 million when it was first launched in 2014, and is currently valued at £2.7 billion.