Quiz investigates report into illegal pay at Leicester factory

An undercover reporter was told by a factory in Leicester that she would have to work unpaid for two days and would then be paid £3-4 an hour, less than half the national living wage, The Times reported. It said Quiz-branded jackets were at the factory.

Quiz shares fell 21% to 5.32p a share at 08:05 BST reflecting investor fears about the company's reputation and business.

Quiz said it was "extremely concerned" by the report and that if the allegations were correct this was "totally unacceptable". The report follows allegations about treatment of workers in factories in Leicester linked to Boohoo which have battered the company's reputation and share price.

"From our initial review, we believe that one of Quiz's suppliers based in Leicester has used a sub-contractor in direct contravention of a previous instruction from Quiz.," the company said. "It is this sub-contractor that is subject of the national living wage complaint. Quiz has immediately suspended activity with the supplier in question pending further investigation."

Quiz said it understood its obligations and that any supplier that failed to stick to its code of practice would be terminated. It said it was close to appointing an independent reviewer to carry out more regular audits of suppliers in and around Leicester.

Tarak Ramzan, chief executive of Quiz, 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. The alleged breaches to both the law and Quiz's ethical code of practice are totally unacceptable.

We are thoroughly investigating this incident and will also conduct a fuller review of our supplier auditing processes to ensure that they are robust. We will update our stakeholders in due course."