Boohoo directors capitalise on falling share price to snap up shares
Boohoo directors, including co-founder Mahmud Kamani, snapped up shares in the fast fashion group yesterday after its share price slumped following news that its auditor had stood down.
Kamani acquired 300,000 shares at a price of 243.07p each, an investment of £729,000, meaning he now owns a 12.6% stake in the business.
Catherine Catto, wife of CFO Neil Catto, acquired 5,825 shares at 257.48p each, taking Catto's stake in the business to 0.75%.
Meanwhile Brian Small, deputy chairman and non-executive director, bought 10,000 shares at 250.20p giving him a 0.005% stake.
The purchases were made after Boohoo shares slumped from 315p at close of business on Friday to 254p on Monday following news that PwC, the company's auditor since 2014, had stood down.
PwC's resignation followed the publication of an independent report into Boohoo's supply chain by Alison Levitt QC.
Boohoo commissioned Levitt to conduct the report following allegations in The Sunday Times that staff at factories where its clothes were seen had been paid as little as £3.50 an hour.
Levitt concluded that while Boohoo had been aware of the potential mistreatment of staff in its supply chain, it had not deliberately sought to profit from it but nor had it chosen to do anything to rectify the situation.
In her report she said: “In truth Boohoo has not felt any real sense of responsibility for the factory workers in Leicester and the reason is a very human one: it is because they are largely invisible to them.”
It also emerged this week that a number of major accountancy firms had ruled themselves out of the process to appoint a new auditor at Boohoo including Deloitte, KPMG, BDO and Grant Thornton.
At the time of writing Boohoo shares were trading at 254.9p.