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Boohoo to Create Hundreds of Jobs in Opening Fourth Warehouse

Business is booming at Boohoo Group.

The British fast-fashion retailer is slated to open a fourth warehouse after signing a long-term lease, it said Friday, noting it expects the scalable site in Daventry, Northamptonshire, to become operational sometime between June and August, its second fiscal quarter.

“This site will support the Group’s expansion and adds capacity in addition to its existing facilities in Burnley, Sheffield and Wellingborough,” it said in a statement.

Boohoo’s total facilities are expected to handle more than 4 billion pounds ($5.5 billion) in net sales, it added.

Boohoo, whose brands include Karen Millen, Oasis, Coast, MissPap, BoohooMan, and PrettyLittleThing, also said it plans to invest more than 50 million pounds ($68.6 million) “in the coming years, increasing capacity and offering the Group operational flexibility as it grows.” For starters, the new facility will create about 500 new jobs could support as many as 1,000 positions at a later date.

Boohoo could use the additional capacity, after snapping up the bankrupt Debenhams brand and related intellectual property assets for 55 million pounds ($75.1 million) in January. It also acquired the Dorothy Perkins, Burton and Wallis brands from the Arcadia Group bankruptcy in February for 25.2 million pounds ($34.6 million). But the e-tailer didn’t buy any of the stores, leaving many of the department store’s 10,000-strong workforce members facing the loss of their jobs. The new Daventry warehouse would at least help ameliorate some of those job cuts as it begins to onboard workers

Boohoo has been the center of attention as consumer complaints allege problematic product labeling and prices, while the fashion giant has taken flak for slashing 400 suppliers before publishing a list of its U.K. network after pledging to promote greater transparency within its value chain.