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Michigan Post > Blog > Business > ‘Sweatshop’ scandals have left Leicester’s once-thriving clothes trade in existential disaster
Business

‘Sweatshop’ scandals have left Leicester’s once-thriving clothes trade in existential disaster

By Editorial Board Published May 28, 2025 5 Min Read
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‘Sweatshop’ scandals have left Leicester’s once-thriving clothes trade in existential disaster

You in all probability recall the tales about Leicester’s clothes trade lately: grim labour circumstances, pay under the minimal wage, “dark factories” serving the quick style sector. What’s much less well-known is what occurred subsequent. In brief, the trade has cratered.

Within the wake of the recurrent scandals over “sweatshop” circumstances in Leicester, nearly all of main manufacturers have now deserted town, triggering an implosion in manufacturing within the place that after boasted that it “clothed the world”.

And now Leicester faces an additional existential double-threat: competitors from Chinese language corporations like Shein and Temu, and the approaching arrival of low cost imports from India, following the latest commerce deal signed with the UK. Many fear it might spell an finish for town’s style enterprise altogether.

Extra on this story:The trendy slaves making our garments in LeicesterHow Leicester’s textile employees are being exploitedBoohoo failed in Leicester provide chain malpractice

‘Sweatshop’ scandals have left Leicester’s once-thriving clothes trade in existential disaster

The overwhelming majority of excessive road and quick style manufacturers that after sourced their garments in Leicester have now shifted their provide chains to North Africa and South Asia.

And a brand new report from UKFT – Britain’s style and textiles foyer group – has discovered {that a} staggering 95% of garments corporations have both trimmed or utterly eradicated garments manufacturing within the UK. Some 58% of manufacturers, by turnover, now have an express coverage to not supply garments from the UK.

Seamstresses in former Leicester factory

Picture:
Seamstresses in one of many metropolis’s former factories

Clothing industry workers in Leicester

Picture:
Clothes trade employees in Leicester

Jenny Holloway, chair of the Attire & Textile Producers Affiliation, mentioned: “We know of factories that were asked to become a potential supplier [to high street brands], got so far down the line, invested on sampling, invested time and money, policies, and then it’s like: ‘oh, sorry, we can’t use you, because Leicester is embargoed.'”

A trade fair tries to reignite enthusiasm for the city's clothing industry

Picture:
A commerce honest tries to reignite enthusiasm for the native clothes trade

Tejas Shah, a third-generation producer whose household firm Shahtex used to make supplies for Marks & Spencer, mentioned: “I’ve spoken to brands in the past who, if I moved my factory 15 miles north into Loughborough, would be happy to work with me. But because I have an LE1, LE4 postcode, they don’t want to work for me.”

Shahtex in Leicester used to make materials for Marks & Spencer

Picture:
Shahtex in Leicester used to make supplies for Marks & Spencer

Tejas Shah is a third-generation manufacturer

Picture:
Tejas Shah, of Leicester-based agency Shahtex

Risk of Chinese language manufacturers Shein and Temu

That ache has been exacerbated by a brand new phenomenon: the rise of Chinese language quick style manufacturers Shein and Temu.

They provide shoppers ultra-cheap garments and items, made in Chinese language factories and flown direct to UK households. And, because of a customs loophole referred to as “de minimis”, these items do not even incur tariffs after they arrive within the nation.

An online advert for Chinese fast fashion company Shein

Picture:
An internet advert for Chinese language quick style firm Shein

In line with Satvir Singh, who runs Our Style, one of many final remaining knitwear producers within the metropolis, this risk might show the ultimate straw for Leicester’s clothes sector.

“It is having an impact on our production – and I think the whole retail sector, at least for clothing, are feeling that pinch.”

Inside one of the city's remaining clothesmakers

Picture:
Inside one of many metropolis’s remaining clothesmakers

Whereas Donald Trump has threatened to abolish the loophole within the US, the UK has solely introduced a evaluation with no timeline.

“If we look at what Trump’s done, he’s just thinking more about his local economy because he can see the long-term effects,” mentioned Mr Singh. “I think [abolishing de minimis exceptions] will make a huge difference. I think ultimately it’s about a level playing field.”

TAGGED:ClothingcrisisexistentialIndustryleftLeicestersoncethrivingscandalsSweatshop
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