Investigation finds Boohoo, River Island, New Look workers paid £3.50 an hour

Clothing companies AIM-listed Boohoo, New Look, Misguided and River Island have been accused of paying workers between £3 and £3.50 an hour, below the UK minimum wage.

A reporter from Channel 4’s Dispatches went undercover as a prospective employee at Fashion Square, which makes clothes for River Island, another factory which makes clothes for New Look, and United Creations, which was making garments for Boohoo and Missguided.

The reporter was paid between a £3 and £3.50 an hour at the factories, which is below the legal minimum wage of £7.20 an hour for workers aged 25 and over.

Boohoo said that it was unaware that United Creations was working for one of its suppliers and it would not tolerate workers being paid below the minimum wage, while Missguided said they taking the allegations very seriously and have begun an international investigation. New Look said they were concerned by Dispatches’ revelations.

Fashion Square and United Square have refuted claims that their employees have been paid below minimum wage.

Dispatches will air on Monday at 2000 GMT on Channel 4.

Shares in Boohoo were down 0.35% to 140.75p at 0934 GMT.