An investigation reported by Sky News highlights Boohoo's involvement in supply chain malpractice in Leicester, where its engagement with local manufacturers contributed to exploitative labor conditions and the collapse of a once-thriving clothing industry.

A BBC investigation reported that Boohoo broke its 2020 promises to overhaul its labor practices and improve supply chain transparency, revealing that suppliers were pressured to cut prices and adhere to unrealistic timelines.

Investors have launched a £100 million lawsuit against Boohoo following serious allegations of modern slavery and poor labor practices in its Leicester factories. An independent review confirmed claims that workers were underpaid and forced to work in harsh conditions due to inadequate supply chain monitoring and weak corporate governance. Boohoo has stated it will robustly defend against any legal proceedings.

A legal review published on 22 October 2021 examined Boohoo's Leicester supply chain and found evidence of exploitative working conditions and excessively low wages. The review concluded that under a hypothetical mandatory human rights due diligence/'failure to prevent' law modeled on the BIICL provision, Boohoo could have been found liable for breaches of the Guiding Principles, highlighting serious ethical concerns regarding both labor practices and supply chain management.

Labour rights organizations and investors have condemned Boohoo for its slow progress in addressing longstanding labour abuses and substandard working conditions in its UK supply chains. Despite previous commitments and reviews, reports indicate persistent issues such as below-minimum wages and lack of transparency on supplier practices, prompting calls for more substantial action.

In July 2020, a report from Labour Behind the Label detailed widespread labor abuse, including wage theft and unsafe working conditions in Boohoo’s UK supply chains. In response, Boohoo initiated an independent review, but investors – notably Aberdeen Standard Investments – divested their holdings, and major retailers removed Boohoo products from sale, signaling market disapproval of its labor and supply chain practices.