Fears for Boohoo shares over potential government clampdown over Leicester scandal

The broker also added to voices doubting whether Boohoo could continue to make its high profit margins if workers in its suppliers' factories were were paid the correct wages and forced to maintain legal working conditions.

It also pointed out that Levitt had not looked deeply into the alleged financial interest Boohoo's founding Kamani family have in the Leicester factories and stressed that a government agency's investigation would be more thorough. Levitt cited that there were two instances where chairman Mahmud Kamani's brother issued a secured loan to one of its major suppliers, and that he has a "social and family relationship" with the owner of Morefray and Revolution Clothing - two companies at the centre of press allegations in July.

The broker added that Levitt had noted that Boohoo's board had failed to cooperate with her in some instances: "An investigation by a government agency may not give the company the same liberty," Liberum pointed out.

Leicester's geographical closeness to Boohoo's customers is key to the company's so-called "test and repeat" model where it is able to experiment with new lines and rapidly ramp up production if they prove popular.

Liberum also highlighted Levitt's concern about the apparent lack of seriousness with which Kamani treated her investigation. In a scheduled formal interview with her over the allegations, he chose to hold it over video while having breakfast on a hotel terrace with people coming and going.

Kamani did not even appear to recognise the name of his own internal auditor, Edward Toogood, who had raised concerns about factory conditions during Kamani's time as chief executive.