IB Business Management
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All things Business Management - relating to the IB Business Management course
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Boohoo dives into debt as losses soar to £160m and sales slump | Boohoo | The Guardian

Boohoo dives into debt as losses soar to £160m and sales slump | Boohoo | The Guardian | IB Business Management | Scoop.it
Online fashion retailer cut over 1,000 jobs in year to February amid competition from rival Shein and resurgent high street
Graham Watson's insight:

This article in the Guardian highlights a dramatic turnaround in the fortunes of one-time darling of the fashion sector Boohoo. The company who owns a range of brands - Debenhams, Warehouse, Dorothy Perkins and Pretty Little Thing - has moved from a position of having £6m in net cash a year ago to net debts of £95m by the end of February.

 

The first thing you might want to investigate is how firms can easily keep trading in such circumstances - but I'd then want to know what has happened to produce such a change and how the business might be expected to respond. At the moment, it has very much lost its lustre. 

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Fast fashion: Boohoo breaks promises on ethical overhaul

Fast fashion: Boohoo breaks promises on ethical overhaul | IB Business Management | Scoop.it
The firm promised change in 2020, but the BBC has filmed staff squeezing suppliers after deals were agreed.
Graham Watson's insight:

Tonight's Panorama looks at the business practices of fashion chain Boohoo and is going to allege that despite seemingly agreeing to make its business practices more ethical, it seems that this hasn't been the case.

 

In this instance, the firm seem to be using its monopsony power to drive down contractually agreed prices, to the detriment of smaller suppliers.   

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