Boohoo has announced that following an exchange of contracts, it has agreed a long-term lease for a new warehouse in Daventry, in a bid to fuel further growth for the group.
The site is due to become operational in the second quarter of the retailer’s financial year, and forms part of the group’s efforts to continue its ongoing expansion.
The Daventry warehouse will add further capacity in addition to its existing facilities in Burnley, Sheffield and Wellingborough. In aggregate, these sites will reportedly give the group net sales capacity in excess of £4bn.
The new warehouse is scalable, with the group expecting to invest over £50m in the coming years, increasing capacity and offering the group operational flexibility as it grows.
The deal is expected to secure up to 500 jobs and in the future create up to a further 1,000 jobs as capacity increases at the site.
The announcement comes two weeks after Boohoo confirmed it had cut ties with a number of suppliers that did not meet its transparency targets.
The group said that it has ceased doing business with a number of manufacturers as they were unable to “demonstrate the high standard of transparency required”, despite being provided with opportunities to address any issues identified in auditing processes.
It comes six months after an independent report produced by Alison Levitt QC “identified many failings” in the Leicester supply chain and recommended improvements to boohoo’s related corporate governance, compliance and monitoring processes.