LONDON, July 13 (Reuters) - British fashion retailer Quiz
said on Monday it had suspended ties with a supplier
accused in a weekend newspaper report of breaching minimum wage
requirements at a factory in Leicester, central England.
The Times reported on Saturday that workers at the factory
were paid as little as 3 pounds ($3.80) an hour to make clothes
Britain's minimum wage is 8.72 pounds for people over 25
years old and 8.20 pounds for people aged 21 to 24.
Quiz said it was investigating the allegations and that its
initial review had found the supplier had used a sub-contractor
in direct contravention of a previous instruction. It did not
identify the supplier.
Quiz's shares dropped around 20% in early dealings, but by
1335 GMT had recovered to trade up 3.4% at 6.98 pence.
The Times report followed allegations in a July 5 Sunday
Times report of poor working conditions at a Leicester-based
supplier to online fashion retailer Boohoo, which sent
its shares 28% lower last week.
Boohoo said on July 8 it was launching an independent
investigation into the allegations and that it was committed to
driving up standards where required.
It also noted that Britain's The Gangmasters and Labour
Abuse Authority had not taken any enforcement action during its
investigation into working conditions at clothing manufacturers'
factories in Leicester.
($1 = 0.7897 pounds)
(Reporting by James Davey; Editing by Mark Potter and Jon