Boohoo Group’s not happy with some of its suppliers.

The fast fashion e-tailer is alleging that some are producing subpar goods, and Boohoo is withholding payments until they make good on the orders.

More from Sourcing Journal

• Legislation Shouldn't Exacerbate Supply Chain Inequities, Garment Manufacturers Say

• Boohoo To Launch Marketplace As It Gears Up For Lender Talks

• Manufacturers See Low Success Rates for Early Gen AI Initiatives

“Boohoo Group is committed to delivering product of the highest quality to its customers. We are currently talking with a very small number of supplier partners where, unfortunately, the product supplied was not of a high enough standard,” the e-tailer said in a statement to Sourcing Journal. “We are working collaboratively with them to remedy the situation and ensure this does not happen again.”

Boohoo has seen sales slow as consumers pull back due to inflationary pressures. Some of the pullback is also due to intense competition from Chinese e-tail rivals Shein and Temu. And Shein is looking to gain an even deeper foothold in the U.K. It had planned on a U.S. initial public offering, but met roadblocks from congressional leaders and has since shifted its IPO focus to a flotation on the London Stock Exchange. Shein has tapped former EU budget executive Günther Oettinger to help it with its pre-IPO lobbying effort.

For Boohoo executive chairman Mahmud Kamani, both Shein and the alleged supplier problem are just the latest additions to a long list of challenges he faces in a turnaround of the company’s fortunes.

In June, nearly 50 Boohoo investors filed claims seeking more than 100 million pounds ($127 million) in damages connected to alleged labor rights violations at its supplier factories in Leicester that, once public, caused the e-tailer’s share price to collapse.

Boohoo is also working with advisors to help with lender talks regarding a refinancing of the company’s 325 million pound ($422.2 million) revolving credit facility. It already secured a one-year extension on 250 million pounds ($324.8 million) that’s now due in 2026, but a sticking point remains the 75 million pounds ($97.4 million) that’s still due in March 2025. Boohoo reportedly in February had borrowed the entire amount.

Meanwhile, Boohoo is set to unveil a new online marketplace on Aug. 31 called Boohoo Brands. The platform will feature at least 150 brands across fashion, accessories, and beauty. And to drum up lagging sales globally, the e-tailer has already integrated thousands of social media influencers onto its website through a  social commerce initiative called Boohoo Collective. These influencers also share discount codes on their shoppable TikTok and Instagram pages to earn commissions.