Hundreds of jobs could be lost as a significant East Lancashire online fashion distribution centre is earmarked for closure next year.
Fashion retailer Debenhams has announced its intention to shutter its facility on Burnley's Heasandford Industrial Estate in Widow Hill Road, previously the operational headquarters of the BooHoo brand, in 2026. Operations will relocate to Sheffield.
Burnley Council leader Afrasiab Anwar branded the closure decision as 'devastating for our town and for the hardworking employees and families who will be directly affected'.
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Established in 2006 by Mahmud Kamani and Carol Kane, Boohoo acquired Debenhams, a 247 year old fashion chain, from administration in 2021 through a £55 million transaction that transformed it into a digital-only retailer. In March BooHoo was rebranded as Debenhams Group.
As the company pursues cost reduction measures and evaluates its premises, the Burnley facility – which supports 1,251 workers across multiple warehouses and additional structures on the Heasandford Industrial Estate – will wind down.
A Debenhams Group spokesperson commented: "Following a strategic review, we are proposing the potential closure of our Burnley distribution centre in early 2026, with operations gradually transferring to Sheffield, which could offer greater capacity and efficiencies. This is not a proposal we put forward lightly, but we believe it may be important for the long-term health of the business and for delivering our new strategy.
"Consultation with Burnley colleagues has begun, and as part of this process, we will carefully consider feedback and explore opportunities for colleagues to remain with the business. We will not comment further while the consultation is ongoing."
Coun Anwar said: "The news that Boohoo will be moving its distribution centre operations from Burnley to Sheffield is devastating for our town and above all understand the distress it will cause for the hardworking employees and families who will be directly affected. While there have been recent reports of financial challenges and speculation about the company's future, we were reassured that no decision had been taken.
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"This announcement has caused understandable concern and uncertainty across our community. The Burnley distribution centre has played a large role in our local economy for many years, and its closure will have a significant impact on many households and businesses.
"As a council, we are engaging urgently with the company, government and other partners to seek clarity and ensure every possible support is provided to those affected. Our priority now is to stand with those impacted, work together with partners, and ensure Burnley continues to build a strong future".
The Labour group leader of the council, Coun Mark Townsend, said: "The transfer of the BooHoo operation from Burnley to Sheffield is terrible news for the town and the borough. I would hope that even at this late stage Debenhams will reconsider this decision."
Debenhams Group is considering the disposal of its entire struggling youth brand Pretty Little Thing, which encompasses BooHoo, as part of chief executive Dan Finley's restructuring strategy.