Debenhams Group reverses plans to move Burnley distribution centre to Sheffield
The Debenhams Group has confirmed it will retain its distribution centre in Burnley
More than 1,200 jobs are expected to return to Burnley after the Debenhams Group confirmed it will retain its distribution centre in the town, reversing plans announced last year to move operations to Sheffield.
The company, formerly known as Boohoo Group, has confirmed it will keep its site at Heasandford Industrial Estate, with global logistics firm GXO appointed to operate the facility.
Warehouse and distribution operations are expected to return from Sheffield in early 2027 under a new partnership between the two companies.
The announcement marks a major turnaround for the town after the company revealed in August 2025 that it planned to close its Burnley distribution centre, putting 1,251 jobs at risk.
At the time, the proposed move was described as devastating for Burnley, with the loss of the site threatening a significant blow to the local economy.
Burnley Council and local partners subsequently worked to support affected employees through a Redundancy Taskforce, bringing together employment and skills organisations to help people find alternative work and training.
The WorkWell programme, delivered in partnership with Calico Enterprise, was among the support offered to workers.
The council is now re-establishing the taskforce to help local people access employment, training and skills opportunities as operations return to the site.
“Boohoo’s departure from Burnley felt like a tragedy at the time, a real loss for our town and for the people who had built so much pride in that site.”
Coun. Anwar added: “To see Boohoo and Debenhams now choosing to return, following the sale of the Sheffield distribution centre, is nothing short of a massive win for Burnley. It shows confidence in our borough, belief in our workforce, and recognition of the momentum we have built together.
“I want to place on record my huge thanks to our council officers, whose tireless and highly professional work made this possible; to the Debenhams Group board for believing in Burnley once again; and to all politicians who put party politics aside and worked as one for the good of the borough.
“This is Burnley at its best, united, ambitious, and determined to secure opportunities for our residents.”
Oliver Ryan, MP for Burnley, Padiham and Brierfield, said: “This is great news for Burnley and another vote of confidence in our town.
“The move will deliver jobs, apprenticeships and huge economic benefit in the years ahead. Debenhams Group has gone through a strong turnaround, and I’m glad to have them back as a local partner.”
Coun. Stephen Atkinson, leader of Lancashire County Council, said the return of a major distribution operation would provide a boost for the county, bringing the prospect of jobs and wider economic benefits.
He added that the announcement sent a positive message about confidence in Lancashire, its workforce and its potential to attract investment.
Dan Finley, chief executive of Debenhams Group, said: “We’re delighted to be returning to Burnley.
“Burnley has played an important role in the group’s history for over a decade, which was a primary distribution location for over a decade.
“We’re excited to be combining our years of experience operating in the town with GXO’s fulfilment expertise, to support the next phase of the Group’s growth.”
GXO has already started recruiting for the Burnley site.
Anyone interested in available opportunities and how to apply can visit https://gxo.jobs/Burnley.