Boohoo is facing fresh backlash over alleged mistreatment of suppliers, with multiple industry sources claiming the fast fashion group owes significant sums to manufacturing partners — as it attempts to rebrand under the Debenhams name.
Several UK suppliers told Drapers that Boohoo is months behind on payments, with one alleging they are owed hundreds of thousands of pounds for goods delivered over a three-month period. Another said invoices six weeks overdue still haven’t been paid.
The claims echo reports seen by Retail Gazette, where anonymous insiders alleged abrupt cost-cutting and exploitative practices across the group’s supply chain.
“It’s becoming increasingly clear there is no respect for suppliers,” read one anonymous message. “Suppliers are not being paid for months on end, owed hundreds of thousands of dollars, losing relationships. Suppliers can’t even afford to buy fabric.”
One claim suggested a Leicester-based supplier is owed £2m.
Another contributor wrote: “They come asking for sustainable products and I often remind them sustainability starts with ethics — i.e. pay your supply chain.”
Others accused the group of unilaterally slashing cost prices. “You get a call saying Boohoo bosses think prices should come down, and they deduct 30% from invoices. You get no say. They just do it,” one alleged.
One supplier reportedly cancelled a repeat order the day before handover in protest at a sudden price drop. “Absolute fair play to the supplier,” the post added.
-
Related Story
-
The accusations extend beyond Boohoo to sister brands PrettyLittleThing and even to Jigsaw, according to supplier sources. “I work for a supplier that’s now not in business because of tactics like this,” one commenter said.
The fresh claims follow customer service concerns raised in The Telegraph last month, where shoppers reported refund delays and referred the company to Trading Standards. On Trustpilot, one customer described Boohoo’s service as “shocking, disgusting” after waiting more than three weeks for a return to be processed.
The company admitted in June that some refunds were taking longer than usual, saying: “We’re aware that some customers haven’t received their refunds as quickly as usual and we’re working to resolve that.”
Boohoo, which saw full-year sales drop 16% to £1.46bn, is understood to be finalising a £175m refinancing deal led by US firm TPG.
The retailer has begun trading under the Debenhams Group banner but remains officially listed as Boohoo on Aim, after Frasers Group blocked a formal name change earlier this year.
Frasers, which owns a 17% stake, also attempted to install founder Mike Ashley as CEO — a move the Boohoo board rejected.
Debenhams Group have been contacted for comment.
Click here to sign up to Retail Gazette‘s free daily email newsletter
