Boohoo to Cut 1,250 Jobs with Burnley Logistics Hub Closure

Boohoo is continuing its restructuring. The British fashion retail group, now called Debenhams Group, has announced the definitive closure of its distribution center in Burnley (UK) by early 2026, affecting 1,250 jobs.

The company will move all operations to its Sheffield distribution center in Yorksire, according to BusinesLive. The gradual transfer of operations is expected to “deliver increased capacity and efficiencies.“

The decision is part of the brand’s restructuring strategy, following a 17% drop in revenue during the last fiscal year, which ended last February. A Debenhams Group spokesperson has pointed to the move as an “important proposition for the long-term health of the business.“

Boohoo (Debenhams Group) ended FY2024 with a 12% drop in revenue

Boohoo already announced plans to sell its PrettyLittleThing brand as well as revamp its logistics center in Burnley two weeks ago. The company’s CEO from November 2024, Dan Finley, explained that the company is looking for a turnaround after “a prolonged period of unacceptable underperformance.“

Debenhams Group closed fiscal 2024 with revenue down 12% to 790.3 million pounds ($1.60 billon), excluding PrettyLittleThing results. Pre-tax losses increased to 263.9 million pounds ($356.2 million), up from 146.4 million pounds ($197.6 million) a year earlier.

However, adjusted ebitda improved to 41.6 million pounds ($56.1 million), which translates into a margin of 5.3%, thanks to lower distribution costs following the closure of warehouses and other cost containment measures, such as a 30% reduction in headcount.