LONDON, July 10 (Reuters) - Investor Standard Life Aberdeen said on Friday it had sold its shares in fashion retailer Boohoo, describing the company’s response to allegations of worker abuse at supplier factories as “inadequate”.
SLA, previously one of Boohoo’s biggest investors, has sold most of its stock, a spokesman for the asset manager said, confirming an earlier report in the Financial Times.
Boohoo shares have plunged after The Sunday Times reported that workers in a factory in Leicester, central England, who were making clothes destined for Boohoo, were paid as little as 3.50 pounds ($4.39) an hour.
Boohoo said it would commission an independent review of its supply chain in Britain
Lesley Duncan, deputy head of UK equities at SLA unit Aberdeen Standard Investments, said the firm had invested in Boohoo since its listing, but said there had been insufficient progress improve working conditions.
The response was “inadequate in scope, timeliness and gravity”, Duncan said, adding: “We strive to use our influence as significant investors to achieve progress,”
“In instances where our standards have not been met, divestment is both appropriate as responsible stewards of our clients’ capital and aligned to our goal of investing for better outcomes.”
Reporting by Carolyn Cohn; editing by Sujata Rao