LONDON (Reuters) -British on-line style retailer Boohoo (LON:) mentioned it could hand over on supplying its prospects in america from a U.S. centre and would as a substitute fulfil orders direct from the UK, leading to a write-down.
Boohoo mentioned on Wednesday it could 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 positioning as a “gamechanger” as it could slash supply instances to American consumers.
Nonetheless, it can now fulfil all U.S. orders from its distribution centre in Sheffield, northern England.
It mentioned the transfer would allow it to broaden its product providing for U.S. prospects.
It’s going to, nonetheless, lead to a write-down on its steadiness sheet towards 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% up to now this yr, mentioned it can present additional particulars at its half-year outcomes.
