Boohoo eyes closure of Leicester factory

Boohoo Group is looking to close its Thurmaston Lane factory in Leicester in favour of relocating its operations, Drapers has reported. 

The news comes after the online fashion retailer entered a consultation last month, which revealed that “less than 100” employees will be impacted at the so-called “model factory” in Leicester.

The 23,000 sq ft site first opened in January 2022, and since then, has been subject to much controversy. 

In November last year, a BBC Panorama investigation revealed that some orders placed through the factory were actually being made by seven factories in Morocco and four other places in Leicester. 

According to the retailer, it plans to retain its quality assurance and ethical compliance staff – currently based at Thurmaston Lane – full-time and in another Leicester location. 

A Boohoo spokesperson told Drapers: “As in any retail business, the role of our sites continues to evolve over time, and following significant investments at our Sheffield distribution centre and the opening of a new distribution centre in the USA, we must now take steps to continue to ensure we are a more efficient, productive and strengthened business.

“All these factors have led us to make the difficult decision to consider relocating some of the operations at Thurmaston Lane and consider the closure of 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.”

In October 2023, Boohoo was also targeted by City lawyers over allegations of forced labour in its factories. While an update on this matter is yet to be published by the group, Drapers reports that the retailer will “robustly defend” the claims.

Boohoo has been approached for comment.