Debenhams Group in Burnley return

Debenhams Group will return to Burnley next year, bringing about 1,200 jobs to the town.

The announcement came as part of the Group's publication of its six monthly results ending 31 August 2026, in which it reported EBITDA was up to £19.7m, a £23.2m improvement on the previous six months, and pre tax profits also up £46.2m to £28.3m.

Announcing its results, the Group, which owns Debenhams, Boohoo, PrettyLittleThing, Karen Millen and Boohoo Man, said: "The Group completed the £90m disposal of the Sheffield automation and lease assignment on 10 September and the sale of Nasty Gal for £11.9m on 15 September. Together, these transactions materially reduce the Group’s debt, and net debt is expected to be negligible at the year-end.

"The Group has appointed GXO as its new global 3PL partner to migrate fulfilment from Sheffield to Burnley after Peak and operate the Burnley site, with the total cost to fulfil no more expensive than the cost incurred in Sheffield. The partnership also gives the Group better options to scale fulfilled / delivered by Debenhams, utilising GXO’s UK and international network.

"At 31 August 2026, the Group’s Burnley distribution site was classified as held for sale. Following the period end, and as a result of the Sheffield transaction, the Group has decided to retain the site and it is no longer classified as held for sale. The Group’s expectation of negligible net debt at the year end does not assume any proceeds from Burnley."

The Group pulled out of Burnley in August last year to transfer its operations to Sheffield, putting 1,250 jobs at risk. The Heasandford distribution centre was formerly operated under the Boohoo brand, and was renamed Debenhams Group in early 2025.

Burnley Council and Burnley Bondholders have welcomed the announcement, saying in a statement: "The announcement is a significant boost for Burnley and a strong vote of confidence as a place to do business on a global scale.

"It also represents a positive step for the town’s business community, with the return of a major logistics operation expected to bring wider economic benefits through workforce spending and increased activity for local shops, hospitality businesses and services."

Lukman Patel, chief executive of Burnley Council, said: “We are absolutely delighted to welcome Debenhams Group back to Burnley, with its Heasandford site reopening as a fully operational facility and bringing 1,200 jobs to the town. This is fantastic news for Burnley and a significant opportunity to strengthen our local economy.

“The Redundancy Taskforce will now evolve into the Opportunities Taskforce; a renewed, forward looking partnership designed to maximise the benefits of Debenhams Group investment and unlock real prospects for local people. We are working closely with Debenhams Group and our wider public and private sector partners to help residents access employment, create clear pathways into work and expand apprenticeship opportunities that equip people with the skills to build their futures in Burnley.

“The return of Debenhams Group presents benefits beyond the jobs at the facility itself. It brings opportunities for local people, supports our business community and has the potential to generate wider economic activity across the town. By working together, we want to ensure that these opportunities translate into lasting benefits for Burnley and its residents.”

Neil Evans, chair of Burnley Bondholders and managing director of VEKA, said: “This is fantastic news for Burnley. The return of Debenhams Group after just 12 months and the prospect of 1,200 jobs at its Heasandford facility represent a significant vote of confidence in the town and its role as a place to do business.

“The economic impact of a major employer goes well beyond its own site. A workforce based in Burnley brings potential benefits for retailers, restaurants, hospitality businesses and the many other organisations that make up our local economy. That wider contribution is important for the vitality and prosperity of the town.

“When the original closure was announced, businesses and Burnley Bondholders stepped forward to help affected workers find new opportunities. That response showed what our public private partnership can achieve when the town faces a challenge.

“We are delighted to welcome Debenhams Group back and recognise the positive opportunities this brings. It is a great example of why strong employers, a committed business community and effective partnership working matter so much to Burnley’s future.”

Dan Finley, chief executive of Debenhams Group, said: “We are delighted to be returning to Burnley. Burnley has played an important role in the group’s history for over a decade, which was a primary distribution location for over a decade. We’re excited to be combining our years of experience operating in the town with GXO’s fulfilment expertise, to support the next phase of the Group’s growth.”