Boohoo has reportedly cancelled or postponed a number of orders that were due from a handful of its suppliers as its sales continue to be impacted by rising supply chain prices and the cost-of-living crisis.
According to sources for The Sunday Times, the retailer’s Leicester-based clothing suppliers are taking the biggest hit from cancellations.
A source within the factory told the publication: “Boohoo has cancelled a load of orders. We are just here to do the fast stuff and when they don’t need it, they just stop it in its tracks.”
In response to the report, a Boohoo spokesperson told the newspaper: “As is the case across the retail sector currently navigating uncertain demand, we are constantly reviewing our requirements.”
It is likely that other fast fashion e-tailers are also making similar moves, with rising costs and a decrease in consumer confidence disrupting normal shopping habits.
For 2022 Q1, Boohoo reported its first UK sales drop of one percent while its overall sales took an eight percent hit.
Its share price has also seen a downward trend of 85 percent over the past year, as hedge funds bet against the group and an investigation into alleged ‘greenwashing’ by the retailer was launched.
The company is scheduled to publish its interim results on Wednesday.