Monday 21 December 2020 8:25 am

Boohoo appoints new auditor following factory working conditions scandal

Boohoo has appointed PKF Littlejohn as its auditor, after PwC quit earlier this year in the wake of allegations of poor factory conditions in the fashion group’s supply chain in Leicester.

Deloitte, KPMG, BDO and Grant Thornton each ruled themselves out of the race to replace PwC, with PKF ultimately winning the bid. 

PKF will start auditing the online retailer immediately.

Boohoo saw almost £775m wiped off its market value when PwC announced it was stepping down, with spooked investors sending shares down 20 per cent.

At the time Boohoo did not give a reason for its auditor’s exit, but it was understood that PwC resigned because of concerns about the risks of working with the company following an inquiry into the firm’s factory conditions. 

Boohoo has since terminated relationships with more than 60 Leicester suppliers following an investigation into working conditions at garment factories in the city.