In a strategic move aimed at efficiency and productivity, Boohoo, the Manchester-based fashion retailer, is evaluating the potential closure of its state-of-the-art garment factory in Leicester. The factory, heralded as a «centre of excellence» just 24 months ago, may undergo changes affecting fewer than 100 employees.
Boohoo’s spokesperson stated, «As retail landscapes evolve, our sites must adapt. Following substantial investments in our Sheffield distribution center and a new distribution center in the US, we are taking steps to ensure our business remains efficient, productive, and strengthened.»
The contemplated changes include the relocation of «some roles,» and Boohoo is currently in a consultation period, providing full support to affected colleagues during this process.
The 23,000 sq ft factory and training center, initially positioned to reintroduce lost garment manufacturing skills in the UK, now faces potential reevaluation. Boohoo’s decision follows a comprehensive review by retired judge Sir Brian Leveson, part of the Agenda for Change roadmap initiated in 2020 to enhance conditions in the fashion group’s supply chain.
Recent financial updates indicate a below-forecast decline in annual sales (12-17%), signaling perceived market share loss despite price cuts. Boohoo’s sales for the six months ending August 31 dropped 17% to £729 million, with losses growing to £26.4 million from £11 million.
Boohoo navigates these changes, emphasizing adaptability in a dynamic retail landscape. Stay tuned for updates on the future of Boohoo’s Leicester factory and its continued commitment to excellence.
