Over 1,200 jobs at risk over Debenhams pull-out

Debenhams employs over 1,200 people in Burnley

More than 1,200 jobs could be at risk from the closure of a major distribution site in Burnley.

Retailer Debenhams has said it plans to close its site on the Heasandford Industrial Estate and "gradually transfer" its online distributions centre operations to Sheffield.

The brand, which was bought by Boohoo in 2021, said it would "explore opportunities for colleagues to remain with the business".

Burnley Council leader Afrasiab Anwar said the news was "devastating for the town".

The Debenhams Group has several warehouses and other buildings on the industrial estate.

It intends to close them early in 2026, saying the move to Yorkshire was important for "the long-term health of the business and for delivering our new strategy".

Council leader Anwar added: "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."

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.

Former Burnley MP and Liberal Democrat council Gordon Birtwistle said: "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."

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."