Over 1000 jobs at risk as major Lancashire distribution hub could close
Retailer Debenhams has confirmed that it plans to close its site on Burnley’s Heasandford Industrial Estate
Hundreds of jobs are set to be lost as a major East Lancashire online fashion distribution hub is scheduled to shut next year.
Retailer Debenhams has confirmed that it plans to close its site on Burnley’s Heasandford Industrial Estate in Widow Hill Road, once the nerve centre of the BooHoo brand in 2026.
The operation will be transferred to Sheffield.
"devastating for our town"
Burnley Council leader Cllr Afrasiab Anwar described the closure decision as ‘devasting for our town and for the hardworking employees and families who will be directly affected’.
Founded in 2006 by Mahmud Kamani and Carol Kane, Boohoo bought Debenhams, a 247-year-old fashion chain, out of administration in 2021 as part of a £55 million deal that made it an online-only retailer.
In March BooHoo was rebranded as Debenhams Group.
Now as the firm seeks to cuts costs and review its sites the Burnley operation – which employs 1,251 staff in several warehouses and other buildings on the Heasandford Industrial Estate – is to leave the town.
"greater capacity and efficiencies"
A Debenhams Group spokesperson said: “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.”
"financial challenges and speculation"
Cllr Anwar said: “The news that Boohoo will be moving its distribution centre operations from Burnley to Sheffield is devasting 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.
“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 council’s Labour group leader Cllr 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.”
Former Burnley MP and Liberal Democrat Cllr Gordon Birtwistle said: “The decision to move the whole former BooHoo operation from Burnley to Sheffield means the loss of a lot of jobs.
“The firm also occupies several very large buildings on the Heasandford Industrial Estate.
“It is very very bad news for Burnley in terms of jobs and leaving a very attractive industrial estate virtually empty.
“There are many people and families in Burnley who rely on this firm to survive – maybe 6,000.”
Debenhams Group is weighing up the sale of the whole of its underperforming youth brand Pretty Little Thing, which includes BooHoo, as part of a turnaround plan by Dan Finley, its chief executive.