Fashion chain Quiz suspends ties with supplier over claims staff are paid £3 an hour

Fashion chain Quiz has suspended its ties with a UK supplier over allegations that staff are paid just £3 an hour to produce its clothes.

The company's shares tumbled on Monday morning, after claims emerged that factory workers at one of its suppliers in Leicester are paid well below the minimum wage.

Britain's minimum wage is £8.72 for workers over 25 and £8.20 for people aged 21 to 24.

However, a report in The Times claimed staff were being paid a £3 to produce clothing lines for the company.

Quiz said it was investigating the allegations and that if the claims were accurate, they were "totally unacceptable".

It said its initial review found that one supplier in Leicester had used a sub-contractor in direct contravention of a previous instruction.

It said it was this sub-contractor that was the subject of the wages complaint.

Quiz chief executive Tarak Ramzan, 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.

"Quiz has immediately suspended activity with the supplier in question pending further investigation.

The company said it was "in the advanced stages of appointing an independent third-party partner to provide more regular audits of suppliers in the Leicester region" (Alamy Stock Photo)

"The alleged breaches to both the law and Quiz's Ethical Code of Practice are totally unacceptable."

It added that it was "in the advanced stages of appointing an independent third-party partner to provide more regular audits of suppliers in the Leicester region".

Quiz said relationships will be terminated with any suppliers who fail to comply with this code or meet the group's standards.

It has committed to a full review of its auditing processes to make sure they are robust enough to ensure on-going compliance with its code throughout the supply chain.

Boohoo is also facing backlash over working conditions at one of its UK factories (Boohoo)

Leicester's garment-making industry is already under scrutiny for alleged poor working conditions at some sites.

Last week, Boohoo was under fire after a report claimed workers at one of its supplier's warehouses were being paid as little as £3.50 an hour to work during lockdown.

Retailers including Next, Asos and Zalando have since suspended deals with Boohoo, pending further investigation.

Next also sells Quiz's clothing through concessions.

A spokesman for Next said it "is now carrying out its own investigation, with full co-operation from the Quiz senior management team".

Last week, the National Crime Agency said it had visited a number of business premises in the Leicester area "to assess some of the concerns that have been raised in respect of modern slavery".

"These visits are likely to continue," it said.