Online & Digital

Boohoo owner hit with £118m lawsuit

Boohoo owner Mahmud Kamani, has had a lawsuit filed against him by an IT consultant for breach of an agreement.

Contractor Richard Womack is seeking remuneration for setting up the website, database, and integrated stock lines for the online retailer. He claims to have organised and bought equipment for photoshoots, decide the “look and feel” of the website and chosen the “Boohoo” logo. He also paid for the hosting of the website out of his own pocket.

In total, he claims to have worked for two years in helping to launch the online retailer without any form of payment, as he claims he was promised a 10% stake in the company. On the basis of this promise, Womack continued to work for the company, negotiating contracts, placing orders, dealing with complaints and working on commercial issues beyond the website, developing key ideas for concepts and running marketing campaigns.

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Boohoo is one of the largest online retailers in the UK, with a 48% increase in revenue to £856.9m in the year to February 28, pre-tax profits also rose by 38% to £59.9m.

Womack said: “When I look back on those years, I remember how much time and energy, how much of my life, was invested in creating the Boohoo e-commerce platform and making a success of the business during the brand’s early years. It has continued to sap my energy since – it’s very galling to have had zero recognition for the part I played and the time, money and expertise I invested.

“I’ve never received a single penny for my work on the Boohoo website and it’s just not right particularly when, the reality is, Boohoo has three founders, not two. We agreed that I would receive a ten per cent share in the company by way of remuneration for the work I did and that’s all I ask for – what was agreed.”

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