// Boohoo co-founders have bought shares to stop the share price from falling any further
// Boohoo’s shares fell by almost 50% after the modern slavery scandal
Boohoo has bought another £15 million worth of shares in a bid to stop its share price from falling any further following the modern slavery scandal.
The co-founders of fast-fashion retailer, Mahmud Kamani injected £10.7 million into five million shares, while Carol Kane spent £4.3 million on Boohoo stock on Thursday, in an attempt to boost the embattled business.
Since the investment, Boohoo’s share price has risen by 12 per cent, having seen a near 50 per cent collapse since allegations of issues in a Leicester supplier’s factory first appeared in The Sunday Times.
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Earlier this month, Boohoo was accused of slavery after paying its garment workers in Leicester as little as £3.50 an hour. The factory produces clothes for the fast fashion giant, and was also found to be operating during the localised lockdown without additional hygiene or social distancing measures in place.
In response, Boohoo faced criticism from a number of investors, including Aberdeen Standard Investments, which pulled funding from ethical funds.
The chair of the environmental audit committee, Philip Dunne, criticised Boohoo on Thursday for failing to address warnings of malpractice at Leicester textile factories going back to at least 2018.
“It is incredible that over a year since the committee highlighted illegal working practices in its supply chain, Boohoo has publicly denied any knowledge of what has been happening for years,” he said.
Boohoo responded and said it is “shocked and appalled” by the revelations and has pledged to conduct an independent audit into its supply chain and to invest £10 million into improving practices.