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QUIZ suspends Leicester-based supplier after wages accusation

Online fashion giant boohoo faced similar accusations about one of its suppliers in the city last week

Quiz PLC -
Manafacturers in Leicester have been accused of fueling a second wave of coronavirus infections in the city

QUIZ PLC (LON:QUIZ) shares dropped on Monday following news the group has suspended a supplier in the Leicester area after reports it was paying its staff well below the minimum living wage.

In a statement, AIM-listed QUIZ said it was extremely concerned by the report at the weekend, which alleged a factory in Leicester making the clothing group’s products was paying as little as £3 per hour.

The report in the Times comes just a week after online fashion giant boohoo (LON:BOO) faced similar accusations about one of its suppliers in the city.

boohoo’s share price tumbled on the news and the group has since launched an independent investigation into its supply chain.

QUIZ said it was investigating the allegations, which if found to be accurate are 'totally unacceptable'.

“From our initial review, we believe that one of QUIZ's suppliers based in Leicester has used a sub-contractor in direct contravention of a previous instruction from QUIZ,” the group said in a statement. 

All suppliers must comply with the group's Ethical Code of Practice, it added and those that fail to comply will have their relationships terminated.

In the statement, Tarak Ramzan, QUIZ’s chief executive, said: "We are extremely concerned and disappointed to be informed of the alleged breach of National Living Wage requirements in a factory making QUIZ products.

"The alleged breaches to both the law and QUIZ's Ethical Code of Practice are totally unacceptable. We are thoroughly investigating this incident and will also conduct a fuller review of our supplier auditing processes to ensure that they are robust."

In early trading, QUIZ shares topped the losers board in London, down almost 21% to 5.34p.

 -- Adds share price --

Quick facts: Quiz PLC

Price: 6.21 GBX

AIM:QUIZ
Market: AIM
Market Cap: £7.71 m
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