Boohoo’s share price has fallen over 75 percent in the past year. In a latest blow, one of its biggest shareholders reduced its stake by 50 percent.
T. Rowe Price International, an investment management company, took a 10 per cent stake in Boohoo last September. In less than one year the company offloaded its stake to just under 5 percent.
T. Rowe Price also owns a 10 percent stake in ASOS, a key competitor of Boohoo.
Boohoo has been dogged by poor supply chain practices and recently has been under investigation by the UK’s Competition and Markets Authority (CMA) for its sustainability claims and potential greenwashing.
In January Jupiter Fund Management reduced its holding in Boohoo from 9.99 per cent to 4.7 per cent, according to The Times.
Boohoo, which was founded in Manchester in 2006, has a “not good enough” environmental rating according to Good on You. In 2019 it was named along with Misguided as two of the least sustainable fashion brands in the UK by the Environmental Audit Committee (EAC).