The future of JD Sports’ distribution centre operation in Derby is under review, meaning workers there are facing potential job losses.

The sportswear retail giant has begun a consultation period with staff at the Derby Commercial Park unit, Derbyshire Live has reported, claiming “around 200 workers” are impacted. The consultation period is expected to be concluded by 6 September.

JD Sports, which recently saw profits decline in a “challenging market”, signed a 20-year lease on the newly-built 514,000 sq ft warehouse in 2021. It has a capacity for 500 staff.

A JD spokesperson confirmed the ongoing period of consultation at the centre, adding: “We are doing all we can to look after those colleagues impacted and recognise this may be an unsettling time for them.”

A source familiar with the situation said that although no final decision had been made regarding the distribution centre, the business was working alongside employment agencies and local employers “to help workers find new employment and provide wellbeing support”.

The retailer has another distribution centre in Rochdale (Kingsway) that hasn’t been affected.

In May, JD reported annual results and spoke of “strategic progress in a challenging market”.

Although it saw organic sales growth of 9%, and Premium Sports Fashion organic sales growth of 10.9%, with like-for-like sales growth of 3.8%, profit before tax and adjusting items for the 53-week period was down 7.5% at £917.2 million And for the 52 weeks was £912.4 million, due to “continued investment in people, stores, systems & supply chain”.