Another 11 institutional investors to the Manchester-based Debenhams Group, formerly known as boohoo Group, have joined a High Court lawsuit, with the latest claims bringing the value of the compensation sought to £245m, according to The Telegraph.
This follows an exposé in July 2020, which saw an undercover investigation into Boohoo’s UK supply chain unveil the use of sweatshops, as well as workers being paid below the UK minimum wage in unsafe working conditions. In particular, the BBC Panorama investigation, which followed a reporter spending 10 weeks in an undercover role at Boohoo’s Manchester headquarters, claimed that executives at the etailer and fast fashion giant knew it was using Leicester-based sweatshops to make its clothes.
The new investors who have brought claims against the group include the Bank of Korea and Netherlands-based private sector corporate pension fund for Shell employees Stichting Shell Pensioenfonds (SSPF).
Other US pension funds for public sector employees including the Illinois Municipal Retirement Fund and the Public Employees’ Retirement System of Mississippi are also among institutions who have now joined the claim.
Investors have reportedly alleged that Boohoo co-founder Mahmud Kamani “must have been aware” of the Leicester factory conditions that supplied his companies ahead of the revelations.
And despite a review at the time ruling that Boohoo did not deliberately allow the poor conditions to exist, investors are claiming that Boohoo’s executives failed to disclose information to investors ahead of the company’s share price crash.
The latest Telegraph report says that that a total of 58 investors are now suing Boohoo, including five retail investors who recently joined the claim, while 20 investors have withdrawn from the legal battle since it first launched in 2024.
A Boohoo spokesperson said: “The company strongly contests the allegations and will vigorously defend any claim.”
