Boohoo shares fall 20% as PwC resignation confirmed

Shares of Manchester-based online fashion giant Boohoo Group plc fell about 20% on Monday after the firm confirmed it is looking for a new auditor as PwC prepares to resign from the role amid ongoing concerns about working conditions and pay rates in factories that supply BooHoo.

Some aspects of Boohoo’s wider corporate governance have also raised eyebrows.

Boohoo said last month the independent review of its UK supply chain led by Alison Levitt QC “identified many failings in the Leicester supply chain and recommended improvements to Boohoo’s related corporate governance, compliance and monitoring processes.”

Boohoo’s brands also include and Nasty Gal as well as Oasis, Warehouse, MissPap, Karen Millen and Coast.

In a stock exchange statement on Monday, Boohoo said: “Boohoo … notes recent press commentary with regards to its auditor PricewaterhouseCoopers (PwC).

“The group would like to place on record that PwC is still the group’s auditor at this time.

“The group’s audit committee has recently launched a competitive tender process for the group’s audit, and will update shareholders at its conclusion.

“PwC signed an unqualified opinion on the group’s 2020 financial statements and having served as the group’s auditor since 2014, is not participating in this process.”