Leeds distribution centre to close after Arcadia collapse
A main Arcadia brands distribution centre is set to close at a cost of 400 jobs following the the collapse of the fashion empire.
Despite online fashion retailer Boohoo buying the Dorothy Perkins, Wallis and Burton brands for £25m earlier this month, the near-100-year-old former Burton factory in Leeds that supplied goods to Arcadia-owned stores will close at the end of April, according to the GMB Union.
The union said workers were informed of the closure Thursday and this will be followed by a consultation period ending on April 30 when the site will shut.
The decision will come as a both a blow and a surprise to the area as distribution centres are pivotal for Boohoo's business and demand in general for e-commerce industry continues to grow apace. The future for the site is unknown.
Jake O’Malley, GMB organiser, said: “To see 400 hard-working people lose their jobs while like of Phillip Green and the administrators waltz off with millions is repugnant”.
However, it's no surprise that Boohoo doesn't need the facility as it's well supplied with warehouse space and has been investing heavily in state-of-the-art spaces in recent years.
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