Debenhams warehouse returns to Burnley - six months after closure caused major job losses
More than 1,000 jobs were lost in February when the Debenhams Group moved to Sheffield to cut costs. Six months on, the group plans to return to their original warehouse.
Debenhams has announced it will be returning to Lancashire next year - only six months after shuttering their distribution centre in Burnley.
The Debenhams Group - which owns Debenhams, PrettyLittleThing, boohoo, MAN, and Karen Millen - vanished from Lancashire in February, after previously being one of Burnley’s biggest local employers.
1,251 jobs were lost in the closure, in a move the council described at the time as “devastating”.
The warehouse, at the Heasandford Industrial Estate, was sold for an undisclosed sum in August 2025, with the Debenhams Group’s distribution centre moving to Sheffield at the start of 2026 in a bid to cut costs.
Now in a mirror move, the Sheffield site has been sold to Primark for £90 million, with the Debenhams Group’s distribution centre being moved back to its original location at the start of 2027.
The centre is expected to once again bring 1,200 jobs to Burnley, matching those lost in the original move.
It is now working under a new partnership with international logistics company, GXO Logistics. As such, it is unlikely former workers will take precedence when applying to vacancies.
Nonetheless, members of Burnley Council have said they are happy to see Debenhams return to the town.
“This is great news for Burnley and another vote of confidence in our town,” said Oliver Ryan, MP for Burnley, Padiham and Brierfield. “The move will deliver jobs, apprenticeships and huge economic benefits in the years ahead.
“Debenhams Group have gone through a strong turnaround, and I'm glad to have them back as a local partner".
Council leader Afrasiab Anwar 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.”