Boohoo co-founder likely knew of ‘unsafe conditions’ at Leicester factories, lawsuit claims

New claims made against Mahmud Kamani have suggested that the Boohoo co-founder likely knew about the “unsafe and unsanitary conditions” of Leicester factories associated with the fast fashion brand before the issue became public knowledge.

The allegations come as part of a 177 million pound lawsuit brought forth by shareholders of the group, who are pursuing compensation after a significant drop in share price following the controversy in 2020.

In a High Court filing reported on by the Telegraph, lawyers representing the investors have claimed that Kamani may have been aware that workers at the factories were underpaid and faced “arbitrary abuse and humiliation”.

“It is not, the claimants say, credible that Mr Kamani was unaware of the conditions in which those factories were being operated,” representatives stated in the filing. Boohoo if further accused of not striving for high standards in ethics throughout the supply chain prior to the public outcry, the media outlet said.

Lawyers are now seeking access to communications between Kamani and his sons, Umar and Samir Kamani, who had formerly held senior positions at the group. Kamani is also said to have had well-established relationships with suppliers, and had visited some in person. He is believed to have been introduced to certain suppliers by his brother and Boohoo’s former trading director, Jalal Kamani.

In a statement responding to the allegations, Herbert Smith Freehills, Boohoo’s lawyers, said the company “strongly contest the allegations”, adding: “There is no reasonable basis to include members of the Kamani family, other than Mahmud Kamani.”

Trouble began brewing for Boohoo when reports back in 2020 unveiled allegations of underpaid employees working in unsafe conditions at factories that supplied the company. Following the reports, Boohoo’s share price tumbled 42 percent, swiping one billion pounds of the company’s market value.