Embattled Glasgow-based fashion firm Quiz said on Monday it is “extremely concerned” by news reports about “an alleged instance of non-compliance with National Living Wage requirements in a factory making Quiz products in Leicester.”

Quiz said it believes one of its suppliers based in Leicester “has used a sub-contractor in direct contravention of a previous instruction from Quiz” and that it “has immediately suspended activity with the supplier in question pending further investigation.”

Quiz said in a stock exchange statement: “The group is very grateful to the press for highlighting these alleged breaches.

“The group is currently investigating the reported allegations, which if found to be accurate are totally unacceptable.

“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. 

“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.

“The board is aware that Quiz has clear-cut social responsibilities and legal obligations and understands the critical importance of ensuring the group’s products are sourced from manufacturers whose business operations conform to appropriate standards.

“All suppliers to Quiz must comply with the group’s ethical code of practice.

“Relationships with any suppliers who fail to comply with this code or meet the group’s standards will be terminated.

“Quiz monitors its supplier base through audits and site visits and is in the advanced stages of appointing an independent third-party partner to provide more regular audits of suppliers in the Leicester region. 

“In addition to taking immediate action on this incident, the board commits to a full review of the group’s current auditing processes to ensure they are robust enough to ensure on-going compliance with our ethical code of practice throughout the group’s supply chain.

Quiz CEO 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.”