Boohoo considers closing state-of-the-art factory

In early 2022, Boohoo hailed the opening of its first “model” clothing factory in the UK as a new “centre of excellence”, underlining its commitment to Leicester’s “great future” as a hub for the national textile industry.

It's been 24 months and the fashion retailer is now considering “closing the site in due course”, citing efficiency, productivity and business strengthening initiatives.

The Manchester-based company said fewer than 100 staff at the factory, which also acted as a training centre, could be affected, although it expected “some positions” to be relocated.

A Boohoo spokesperson said: “As with any retail business, the role of our sites continues to evolve over time and following significant investments in our Sheffield distribution center and the opening of a new distribution center in the US. , we must now take steps to continue to ensure that we are a more efficient, productive and strengthened company.

“All of these factors have led us to make the difficult decision to consider relocating some of the operations to Thurmaston Lane and consider closing the site in due course.

“We are now in a period of consultation and are working closely with all affected colleagues to ensure they are fully supported during this process.”

The 23,000 sq ft, multi-million pound factory and accompanying training center were built to “reintroduce skills into garment manufacturing that have been lost to the UK over time”. Initially it employed 100 workers and produced 6,000 garments a week.

Operations at the factory were highlighted as a model by retired judge Sir Brian Leveson in a review carried out as part of Boohoo's Agenda for Change roadmap which began in 2020. The plan aimed to improve conditions in the company's supply chain. fashion group after revelations about low salaries. and conditions particularly at locations in Leicester, where the group sourced around 40% of its product.

In October, Boohoo said it expected annual sales to decline by 12% to 17% below expectations, as analysts said the group had lost market share, despite price cuts. Sales fell 17% to £729m in the six months to August 31, and losses grew by £11m to £26.4m.