A SCOTTISH fashion brand has cut ties with a supplier pending an investigation into alleged illegal work practices in a factory in Leicester.

Glasgow-based brand Quiz is "extremely concerned" about a report in the Times that claimed workers in the factory - which it believes one of its suppliers uses as a subcontractor - were being paid as little as £3 an hour. 

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The company has ended its relationship with the firm pending the results of an investigation into the subcontractor, which Quiz stated it has previously instructed them to avoid. 

The company said it is reviewing the issue, just a week after similar allegations took more than a third off the share price of Boohoo.

"The group is currently investigating the reported allegations, which, if found to be accurate, are totally unacceptable," Quiz said in a statement earlier today.

An undercover reporter for the Times said she had been told by factory bosses that she would need to work unpaid for two days before getting a job that would pay between £3 and £4 an hour.

The minimum wage is £8.72 for someone over the age of 25.

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"From our initial review, we believe that one of Quiz's suppliers based in Leicester has used a subcontractor in direct contravention of a previous instruction from Quiz," the fashion brand said in a statement.

"It is this subcontractor 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 "is very grateful to the press for highlighting these alleged breaches."

Glasgow-based Quiz runs more than 70 of its own stores across the UK, and has 174 concessions at department stores such as Debenhams.

It employs more than 1,500 people in the UK and Ireland.

Quiz said it would terminate its relationships with suppliers that do not live up to its code of practice.

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Chief executive Tarak Ramzan 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."