Boohoo is shutting a distribution centre less than three years after it opened.
The fashion company opened the facility in Crick, near Daventry, Northamptonshire in 2021, but it has now said it has taken the “difficult decision” to close the site – in a move that will hit around 400 employees – after the opening of a new one in the US last year.
Boohoo said the combination of its growth in America and a £150 million investment in its Sheffield facility was behind the move, adding in a statement: “As our business and customer needs evolve, the group has taken the difficult but necessary decision to close our Daventry operation and divert investment to other UK sites, in order to better serve our customers around the world.
“We are working closely with all affected colleagues to ensure they are fully supported throughout this time.”
Boohoo will continue to run two UK-based distribution centres, in Burnley and Sheffield, alongside its recently opened Pennsylvania site in the US.
No date for the closure has been disclosed, but a consultation began late last year.
It comes after Boohoo put ‘Made in the UK’ labels on potentially thousands of clothes that were made in South Asia.
Plain T-shirts and hoodies from the fast fashion firm had their original labels removed last year at Boohoo’s flagship factory in Thurmaston Lane, Leicester, a BBC Panorama investigation found.
Boohoo said the incorrect labels were down to a misinterpretation of the labelling rules.
The mislabelling affected up to one in 250 of Boohoo’s global supply of garments between January and October 2023 and the BBC estimated it could have amount to hundreds of thousands of wrongly labelled garments.
Boohoo claimed it was an isolated incident which had happened as a result of human error, with a company spokesperson telling the BBC: “We have taken steps to ensure this does not happen again.”