U.K. fashion retailer Boohoo last week saw several of its major clients sever ties with it after an undercover reporter for The Sunday Times in London found one of its suppliers was paying its employees less than half the minimum wage.

The reporter also found the factory—based in Leicester, the only U.K. city that has had its lockdown extended by two weeks because of a spike in coronavirus cases—had been operating continually since March without complying with recommended social-distancing measures. It is also accused the factory of pressuring workers—the majority of which were Asian and more susceptible to infection—to turn up for work even if they had tested positive for COVID-19.

Neil Hodge is a freelance business journalist and photographer based in Nottingham, United Kingdom. He writes on insurance and risk management, corporate governance, internal audit, compliance, and legal...