Coronavirus

Asos to consider legal action against Leicester supplier

Asos is reportedly considering legal action against a Leicester supplier after it was found to be in breach of its ethical standards during the lockdown period.

According to The Guardian, following an “ethical audit” the online fashion retailer has classed one of its suppliers as “red critical” meaning that action is needed over potential risks to workers.

The paper revealed that Nick Beighton, the online fashion retailer’s chief executive, said that its ethical team has been active over the lockdown period and that the factory in question has been visited by Asos executives.

He added that another visit would take place before a decision will be made.

It comes after accusations of malpractice at factories in the area that supply rival Boohoo which led to Boohoo launching an “immediate, independent” review of its supply chain. Asos reportedly told the paper that none of the Leicester factories it uses also supply Boohoo.

Earlier this week, Asos reported a 10% increase in group sales to £1.01bn amid the Covid-19 pandemic and has said it is on “track” to deliver “strong profit growth” across its financial year.

The online retailer said its performance was supported by good new customer acquisition, strong growth in ‘lockdown’ product categories (casualwear, activewear, face and body), an overall improvement in underlying demand and beneficial returns behaviours showing more deliberate purchasing.

It also pledged to replay previously claimed furlough support for the government.

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