Lawyers to question Boohoo execs over “fake discount” accusations

Lawyers to question Boohoo executives over ‘fake discount’ accusations
Boohoo chief financial officer Neil Catto is expected to be questioned by lawyers over alleged fake discounts made by the fast fashion retailer.
// US lawyers to ask for testimony from Boohoo executives over alleged fake discounts
// Judges rejected Boohoo’s attempt to dismiss legal action
// The case comes as Leicester MP renews calls for Boohoo CEO to resign

Boohoo’s top brass will be questioned by lawyers over accusations that it offered discounts to customers based on inflated original prices, according to The Telegraph.

The fast fashion retailer’s executives and high-ranking managers will face questioning from lawyers after judges rejected Boohoo’s attempt to dismiss legal action over the “fake” discounts.

Boohoo is alleged to have offered big price cuts to customers, based on inflated original prices which were almost never the prices it had asked customers to pay, The Telegraph reported.

READ MORE: Leicester MP calls for resignation of Boohoo execs after slavery scandal

Earlier this month Manchester-based Boohoo and its subsidiaries PrettyLittleThing and Nasty Gal failed to persuade judges to throw out the class action lawsuit.

The court sided with the US layers bringing the legal claim.

The lawyers said they now expected to take testimony from Boohoo’s executives and managers, including Boohoo chief financial officer Neil Catto, who originally provided evidence to support the company’s bid to have the case dismissed.

The allegations come days after Leicester MP Liz Kendall called for the resignation of Boohoo’s chief executive John Lyttle and executive chair Mahmud Kamani.

The MP for Leicester West said the working conditions revealed within Boohoo’s Leicester supply chain earlier this year as “one of the worst environmental, social and corporate governance scandals in modern UK history”.

The fast fashion retailer saw its share price drop during the summer following revelations that workers at some of the Leicester warehouses were being paid as little as £3.50 per hour.

Click here to sign up to Retail Gazette’s free daily email newsletter


Please enter your comment!
Please enter your name here