In a surprising revelation, Boohoo has acknowledged the mislabeling of clothes with 'Made in the UK' tags when they were, in fact, manufactured in South Asia. This admission coincides with

the fast fashion giant's contemplation of shutting down its Leicester factory. The company admitted to replacing original labels on T-shirts and hoodies at its contentious Thurmaston Lane factory in Leicester between January and October of the previous year, according to a BBC investigation.

Boohoo acknowledges this mislabeling, affecting roughly one in 250 of its products, as an 'isolated incident' attributed to 'human error.' The BBC Panorama estimates that hundreds of thousands of garments shipped from countries like Pakistan in South Asia could have been impacted by this misrepresentation.

Concurrently, Boohoo is evaluating the possibility of closing its Leicester factory and relocating its operations. The company emphasizes that the decision is unrelated to the Panorama investigation's findings. Boohoo clarifies that less than 100 employees at the Thurmaston Lane factory might be affected, anticipating that 'some roles will be relocated.'

The fashion retailer justifies its 'Made in the UK' labels by noting that although the clothes were produced in South Asia, they were printed on in Leicester. Boohoo argues that some elements of the production process were executed in the UK, making it challenging for customers to discern the actual manufacturing origin at the time of purchase.

Boohoo asserts that its plans to close the Leicester site stem from the need for increased efficiency, productivity, and business strengthening, driven by 'significant investments' at its Sheffield and US distribution centers. This decision, according to Boohoo, is independent of the Panorama investigation's revelations.

The Panorama investigation had previously exposed Boohoo's contentious business practices, including allegations of pressuring suppliers to reduce prices even after agreements were made and subcontracting orders from its Leicester factory to Morocco. Boohoo responded, stating that it has addressed past issues, made improvements, and is committed to positive change across its business and supply chain.

Furthermore, City lawyers are reportedly seeking compensation for shareholders in Boohoo, who suffered financial losses following the Leicester workshop scandal. Although no official case has been filed, Boohoo has engaged lawyers to attempt to halt the impending litigation.

The fashion giant, once valued at around £4 billion, has faced a significant decline, currently valued at £385 million. Boohoo's reputation has been marred by controversies, including poor working conditions, low pay, and ethical concerns in its supply chain, leading to ongoing challenges and legal repercussions. Photo by Trappedinburnley, Wikimedia commons.