Burnley welcomes return of Debenhams Group distribution operations

Plans by Debenhams Group to bring its distribution operations back to the town in early 2027, in a move expected to create more than 1,200 jobs, have been welcomed.

The company has confirmed it will retain its distribution centre at Heasandford, with global logistics company GXO appointed to run the site. Warehouse and distribution operations will move back from Sheffield as part of a new partnership between the two companies. 

The announcement comes just over a year after plans to close the Burnley site put more than 1,200 jobs at risk. 

At the time, Burnley Council brought together employment, skills and business partners through a Redundancy Taskforce to support affected workers. This included the WorkWell programme, delivered in partnership with Calico Enterprise, which provided support to employees at the distribution centre. 

The council is now re-establishing the Redundancy Taskforce, working with partners to help local people access employment, training and skills opportunities as distribution operations return to Burnley. 

The return of a major distribution operation is also welcome news for the town’s business community, with the potential to bring wider benefits for local shops, hospitality businesses and services. 

Councillor Afrasiab Anwar, Leader of Burnley Council, said: “Boohoo’s departure from Burnley felt like a tragedy at the time, a real loss for our town and for the people who had built so much pride in that site.

‘’To see Boohoo and Debenhams 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.” 

Oliver Ryan, MP for Burnley, Padiham and Brierfield, said: “This is great news for Burnley and another vote of confidence in our town. The move will deliver jobs, apprenticeships and huge economic benefit in the years ahead. Debenhams Group has gone through a strong turnaround, and I’m glad to have them back as a local partner”. 

Councillor Stephen Atkinson, Leader of Lancashire County Council, said: “This is fantastic news for Burnley and a real boost for Lancashire. The return of a major distribution operation brings the prospect of new jobs and opportunities, as well as wider benefits for the local economy.” 

“It sends a really positive message about confidence in Lancashire, our economic ambition and the strength of our workforce. We want businesses to see Lancashire as a great place to invest, grow and create jobs for local people, and announcements like this underline the opportunities we have across the county.” 

Dan Finley, CEO of Debenhams Group, said: “We’re delighted to be returning to Burnley. Burnley has played an important role in the group’s history for over a decade, which was a primary distribution location for over a decade.

‘’We’re excited to be combining our years of experience operating in the town with GXO’s fulfilment expertise, to support the next phase of the Group’s growth.”