Boohoo appoints PKF Littlejohn as auditor

PwC stepped down as the company’s auditor in October amid concerns about governance, after Boohoo was rocked by a scandal over working conditions at some of its suppliers.

Broker Shore Capital said the appointment will be "interesting to shareholders".

It noted that in recent months, the company has started to change the organisation with the appointment of Shaun McCabe as a non-executive director and to also sit on the audit committee, together with Sir Brian Leveson as ‘Change Tsar’ to oversee the change programme following the allegations of suppliers mistreating workers at the Leicester factories.

"Boohoo has a long journey ahead of it but these small changes will help in its rehabilitation as it changes both the culture and working practices. The appointment of PKF Littlejohn, is an interesting one after what the company term a competitive tender. It would be interesting to note who else amongst the bigger audit firms choose to participate (or not) in the tender process."

Analysts Greg Lawless and Clive Black reiterated their ‘sell’ recommendation on the shares, pointing out there remains significant ground to cover to sort the red corporate governance flags that have been raised this year.