Hundreds of jobs losses will be 'crippling blow' to town

The announcement that hundreds of jobs are set to be lost with the closure of a major online distribution centre in Burnley has been described as a  ‘crippling’ loss to the town.

Debenhams is planning to close its site on Burnley’s Heasandford Industrial Estate site and transfer its operations to Sheffield early next year.

More than 1,250 people are employed at the site – making it one of the single biggest employers in the area.

The Burnley distribution centre was formerly operated under the Boohoo brand, and was renamed Debenhams Group earlier this year.

A Debenhams spokesman 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.” 

Retail and distribution trade union Usdaw has now called on Debenhams to engage with it over the proposed closure of the site.

Amanda Bailey-Coll, Usdaw regional secretary for the North West, said: “Our members are shocked and devastated by today’s announcement that Debenhams Group plan to close the former Boohoo site in Burnley and move operations to Sheffield.

“We are urging the company to allow the staff to have a proper voice through this very difficult and distressing process, by engaging with Usdaw to ensure our members are treated with fairness and dignity.

“For some years, we have been seeking a dialogue with Boohoo, now Debenhams, to enable us to represent our members’ concerns.

“We have been met with a wall of silence from management and staff have been told in no uncertain terms not to engage with the union. The staff are now facing the fight of their lives and that is why they need the support and expertise of an independent trade union.”

More than 1,250 people are employed at the site – making it one of the single biggest employers in the area.

Miranda Barker, chief executive of the East Lancashire Chamber of Commerce, said: “Losing a business the size of Boohoo and Debenhams from the Burnley manufacturing community has a huge effect losing nearly 1,300 jobs. It has a knock-on effect as every job lost affects 10 more in the manufacturing community.

“I can’t help feeling that is as a result of pressures that government are putting on business through changes to taxation and employment law.

“It is putting more and more pressure on our businesses and driving them to rationalise when we need a government that is supporting businesses to grow, thrive and put money into the national economy.

“This is a really worrying sign not just for Burnley, but the UK business community.”

Oliver Ryan MP for Burnley, Padiham and Brierfield, has written a letter to Daniel Finley, the chief executive of Debenhams Group, calling for the business to reconsider .

He said: “This decision would be nothing short of devastating.

“Clearly, for those working on site and their families, this would be a crippling loss, and for the town and community this is catastrophic.

“I implore you and the board to reconsider - work with me, get round the table with me, local and national partners to see how we can save these jobs.”

He also asked what support will be available to employees who may lose their jobs and a timeline for the proposed closure.

Burnley council leader Afrasiab Anwar said:  "It is a huge employer and it has been part of the fabric of Burnley for years.

“I know people who work there and it will have an impact on their lives.

“We’re doing all we can as a council to support and work with partners like the DWP and the government and ministers to ensure that we can provide as much help as we possibly can.

“We’ve not had any sort of clarity from Boohoo or Debenhams about the reasoning behind it and some of that will come out as we as we move through the process.

“We had strong relations with the previous leadership but there has been changes at the top of the organisation.

“The messaging coming out from them is that nothing was happening on the horizon and with it being out of the blue is even more shocking for us all.”

Coun Mark Townsend, leader of the Labour group on the council, said: “As a local authority and as councillors our thoughts and plans have to be on how we help those directly affected and that work starts immediately.”