Boohoo looking to replace PWC

After getting caught up in a labor scandal, UK-based fast-fashion retailer Boohoo has seen shares steeply decline. Now, the company has said they are seeing an auditor to replace PricewaterhouseCoopers. As of 8:26 GMT this morning, their stocks dropped as much as 17 percent, down 14 percent to 272.20 pence. The news reported by Bloomberg.

Boohoo said PwC won’t be participating in the tender. PwC also signed off on Boohoo’s 2020 accounts with an unqualified opinion. PwC themselves have said that they are going to stop auditing Boohoo for reputational reasons.

Boohoo has found itself in controversy due to reports of labor violations with their suppliers. Boohoo has denied any wrongdoing or direct involvement with labor violations; however the controversy has still continued to follow them.

An undercover investigation by The Sunday Times alleged that workers at one factory contracted by Boohoo to produce its clothes earned as little as 4 dollars and 40 cents an hour, well below the minimum wage.

The worries over abuse allegations cost Boohoo half its market value. Boohoo ended up cutting ties two suppliers that infringed upon their code of conducts which is meant to guarantee fair labor practices.