Debenhams Group is set to return to Burnley, bringing jobs and investment back to the town less than a year after shifting its distribution operation to Sheffield.
Burnley MP Oliver Ryan welcomed the move, describing it as a major vote of confidence in the town and its economy.
The announcement marks a dramatic turnaround from 2025, when Debenhams Group announced plans to close its Burnley distribution centre on the Heasandford Industrial Estate and transfer warehousing operations to Sheffield.
The move comes through a partnership between the firm, whose brands include Boohoo, PrettyLittleThing, MAN and Karen Millen, and global distributor GXO Logistics.
Group boss Dan Finley said it would create 1,200 jobs in the town.
Oliver Ryan said: "Debenhams Group/Boohoo will return to Burnley, bringing a lot of new jobs.
"Clearly, this is great news for Burnley and another vote of confidence in our town.
"The move back will deliver jobs, apprenticeships and huge local economic benefit in the years ahead."
At the time, the company said the move would offer greater capacity and efficiency and launched a consultation affecting 1,251 employees based across its warehouses and support buildings in Burnley.
The decision was widely criticised by local politicians, with Burnley Council leader Afrasiab Anwar describing it as "devastating" for the town and the families who relied on the site for employment.
Dan Finley, chief execuitve of Debenhams Group, said: “We’re delighted to be returning to Burnley.
"Burnley has played an important role in the group’s history, as the 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."
The firm's Sheffield site was sold in September to Primark for £90 million, and it will fully depart the South Yorkshire location early next year.
GXO will run the Burnley site, overseeing Debenhams Group's global third-party distribution.
Russell Atkinson, managing director of fashion and apparel at GXO UK and Ireland, said: “We’re excited to begin this new partnership with Debenhams, bringing GXO’s retail logistics expertise and global network to support its continued growth.”
Founded in 2006, Boohoo became one of Burnley's largest private sector employers before purchasing the Debenhams brand out of administration in 2021.
In 2025, the company rebranded as Debenhams Group as part of a wider turnaround strategy.
Mr Ryan said the business had since enjoyed strong growth and was now preparing for a new phase of expansion.
He said: "Debenhams/Boohoo have gone through a strong turnaround, and I'm glad to have them back as a local partner.
"Where we've been able to help the company, this has been a joint effort by me, the excellent Burnley Council, and Lancashire County Council."
In October, a Burnley FC-backed padel club applied for retrospective planning permission after opening in the warehouse before securing formal approval.
Read more
Aldi and Lidl brought under same competition rules as major UK supermarkets
Growing Lancashire accountancy firm opens new office in Chorley
Fire safety firm to relocate to new manufacturing facility in Preston
The MP said his understanding was that the Burnley site was retained after the company relocated warehousing operations earlier this year.
He added: "The Burnley site was retained by the group after they moved their warehousing operations to Sheffield.
"They have since had strong growth and have sold their Sheffield site to Primark, choosing instead to return to Burnley for their next stage of growth."
Councillor Afrasiab Anwar, leader of Burnley Council, said: “To see Debenhams Group 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.”
Jobs are already open to apply for at GXO's website.
Share