LONDON (Reuters) -British on-line trend retailer Boohoo (LON:) stated it will hand over on supplying its prospects in the US from a U.S. centre and would as an alternative fulfil orders direct from the UK, leading to a write-down.
Boohoo stated on Wednesday it will stop operations at its U.S. distribution centre in Pennsylvania by Nov. 11, simply over a yr after it began operations.
The group had beforehand described the location as a “gamechanger” as it will slash supply occasions to American customers.
Nonetheless, it can now fulfil all U.S. orders from its distribution centre in Sheffield, northern England.
It stated the transfer would allow it to broaden its product providing for U.S. prospects.
It should, nevertheless, end in a write-down on its stability sheet in opposition to the investments and prices related to the U.S. operation in addition to sure one-off distinctive money prices.
Boohoo, whose shares have fallen 30% thus far this yr, stated it can present additional particulars at its half-year outcomes.
