// Boohoo share price continues to decline following Leicester scandal
// Boohoo’s current valuation is at £2.74bn, which is not close to reaching its £7.55bn target in 3 years time
Boohoo shares are under pressure as they continued to drop by 18 per cent on Monday and six per cent on Tuesday.
It means the online company’s shares are trading at time of writing at around 217p each, well down from the 415p each they reached only a month ago.
That puts the retailer’s current valuation at £2.74 billion, which is not close to reaching its £7.55 billion target in three years time.
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The share price drop comes after Boohoo was embroiled in a scandal which found it paying its workers just £3.50 an hour in a Leicester factory.
The workers were also found to be operating without social distancing measures in place.
Next and Asos have also dropped Boohoo from their websites amid the allegations that the fast fashion retailer was “forcing” Covid-19 positive workers to attend its factory in Leicester.
Meanwhile, Zalando and Very have also temporarily suspended the sale of Boohoo items.
Boohoo has had more than £1 billion wiped from its share value in the past week.
Moreover, fast fashion retailer Quiz had to suspend work with one of its suppliers amid allegations of non-compliance with National Living Wage requirements in a factory making its clothing in Leicester.
The retailer said it would also investigate the allegations.
In a statement, Quiz said: “The group is currently investigating the reported allegations, which if found to be accurate are totally unacceptable.”
“From our initial review, we believe that one of Quiz’s suppliers based in Leicester has used a sub-contractor in direct contravention of a previous instruction from Quiz,” it added.
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