LONDON (Reuters) -British on-line style retailer Boohoo (LON:) stated it might surrender on supplying its prospects in america 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 might 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 might slash supply instances to American customers.
Nevertheless, 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 would, nonetheless, lead to a write-down on its steadiness 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% up to now this yr, stated it can present additional particulars at its half-year outcomes.