Boohoo Group PLC (AIM:BOO) is considering closing its ‘model factory’ in Leicester, putting a little under 100 jobs a risk, the group revealed.
The 23,000-square-foot factory at Thurmaston Lane in Leicester was opened in January 2022, with the aim of manufacturing garments within the UK, allowing workers a chance to develop their skills while receiving pay above the minimum wage.
Fast forward two years and the fashion company is now considering closing the factory and instead shifting its focus to its distribution centre in Sheffield as well as its new site in the US.
A Boohoo 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… we must now take steps to continue to ensure we are a more efficient, productive and strengthened business.”
Should the site close, operations are expected to be relocated, while those working in the quality assurance and ethical compliance departments there may move to another Leicester location.
In 2023, Boohoo came under flak after a Panorama investigation found that orders made to the factory were transferred over to Morocco and other sites in Leicester.
A month prior to this, City lawyers targeted the group for its alleged practice of forced labour in some of its factories.