Boohoo appoints new auditor

Boohoo has announced that PKF Littlejohn LLP has taken over as its auditor with immediate effect after PwC resigned from the role in October.

In a statement the Manchester fast fashion retailer said: "As required by Article 113B(9) of the Companies (Jersey) Law 1991, PricewaterhouseCoopers ("PwC"), previous auditor to the Group, confirms that there are no matters in connection with this change that should be brought to the attention of the Group's shareholders. The board would like to thank PwC for its services and support provided to the Group over the past seven years."

PwC stood down after accusations of mistreatment of staff (including underpayment) at factories that supply the Boohoo group in Leicester, and the subsequent publication of an independent report into the matter by Alison Levitt QC.

In her report Levitt said that while Boohoo's management did not encourage or seek to profit from such practices at suppliers, it had been aware of issues and had not acted quickly enough in dealing with them.

Following PwC's resignation, a number of big name accountancy firms ruled themselves out of the tender process to take on the account, including Deloitte, KPMG, BDO and Grant Thornton. KPMG was prevented from acting as Boohoo’s auditor for a year due to a conflict of interest, having carried out recent consulting work for the company.

Since the publication of Levitt's report, Boohoo has vowed to clean up its supply chain with co-founder and executive chairman Mahmud Kamani recently appearing before MPs to vow to "make Leicester right". “We are fixing this,” he said. “We will make a better Boohoo.”

Boohoo has also appointed senior retired judge Sir Brian Leveson to oversee its supply chain. Reporting to the board Leveson, who made his name investigating conduct of the media, will provide regular updates on how the company is progressing with its Agenda for Change programme.

The Boohoo Group, which owns PrettyLittleThing, Nasty Gal, Karen Millen, Oasis, Coast and Warehouse, is in the running to acquire Topshop from Sir Philip Green's collapsed Arcadia empire. Should it be successful (interest in Topshop is said to be high) it is unlikely to want to keep any of its stores.

This morning Evans became the first Arcadia brand to be sold having been sold to Australia's City Chic. However the deal does not include the plus size specialist's stores.