boohoo torpedoed by manufacturing investigation

AIM-listed digital clothing retailer boohoo group (LON:BOO) saw its share price drop by 8.98% to 352.70p (as of 09:30 BST) after the Sunday Times ran an expose on working conditions at one of its UK manufacturers. The company said that the site in question was not a registered supplier, but that they would be conducting an audit of the subcontractors used in their supply chain. There will also be a review of the firm’s relationships with those found to have subcontracted to the facility in question.

Master Investor contributor Evil Knievil reckons that further falls could be coming and said that “one must be realistic: the truth is that BOO has been poleaxed in that its margins are hugely suspect“.