JD Sports Fashion has confirmed it’s to close its distribution centre in Derby, East Midlands, with the loss of 200 jobs.
Staff at the Derby Commercial Park facility were informed on Friday (6 September) that they wouldn’t be needed after the weekend, according to reports, following a consultation period that began in July.
A spokesperson confirmed: “We have made the difficult decision to close our Derby distribution centre and are working with all those affected to ensure they are fully supported through this challenging period.”
The sportswear retail giant, which has seen a recent rebound in its fortunes after a difficult start to the year, signed a 20-year lease on the newly built 514,000 sq ft facility just three years ago.
The decision to close the site follows a strategic review of the group’s global supply chain network “which explored all options” available to the business.
JD also operates a large distribution centre in Rochdale, which is near to the company’s head office in Bury and is unaffected by the latest move.
In late August, JD Sports Fashion’s Q2 trading update talked of a “strong, agile multi-brand model” delivering sales growth on both an organic and like-for-like basis, up 8.3% and 2.4%, respectively, during the quarter.
Earlier this year the company’s shares had fallen after it said it saw soft sales in Q4 and analysts speculated that the importance of Nike to the chain was a problem as that brand’s sales story faltered.
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