Boohoo is considering shutting its “model” factory in Thurmaston Lane, Leicester, to relocate its operations.
The business said it entered a consultation in December, with “less than 100” staff members affected at the factory, according to Drapers.
A Boohoo Group spokesperson said: “We opened Thurmaston Lane in January 2022 to support the group in several ways, including manufacturing, printing and training.
“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.”
They continued: “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.”
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Boohoo claimed it planned to retain its quality assurance and ethical compliance staff, currently located at the Thurmaston Lane site, in another Leicester location full-time.
The Thurmaston Lane site faced controversy after November 2023 BBC Panorama investigation found some orders placed via the factory were being made by seven Moroccan factories and four others in Leicester.
The company also faced accusations of forced labour in its factories in October 2023.
Although an update is yet to be published, Boohoo Group insisted it would “robustly defend” the claims.
The Thurmaston Lane site was the group’s first manufacturing facility and announced news of its opening in July 2020.
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