Boohoo has cut ties with a clothing supplier in Leicester after it emerged that a director was involved in money laundering.
The manufacturer produced clothes for PrettyLittleThing (PLT), the brand co-founded by Umar Kamani, the son of Boohoo co-founder Mahmud Kamani. PLT is now owned by Boohoo.
A civil court case involving a dispute between the bosses of two clothing wholesalers first brought the activity to light, according to a BBC File on 4 investigation. A director for Rose Fashion had entered into “cash laundering transactions” via a previous company HKM Trading Limited, a judge said.
Boohoo told the BBC it would never knowingly conduct business with anyone outside the law and it had been swift to provide information to the authorities to support any investigations they may be conducting.
Lawyers for Rose Fashion told the BBC that the firm was set up after the events outlined in the court case and Rose Fashion was not part of it.
Boohoo was plunged into turmoil in July when an undercover Sunday Times reporter visited a factory where staff were allegedly paid less than minimum wage.
An independent report found no evidence Boohoo broke the law, but said the company failed to take action fast enough and warned that its supply chain was likely riddled with bad behaviour from poor working conditions to serious fire safety violations.
Boohoo declined to comment further.