UK's Boohoo to stop supplying US customers from within US

LONDON (Reuters) -British online fashion retailer Boohoo (LON:BOOH ) said it would give up on supplying its customers in the United States from a U.S. centre and would instead fulfil orders direct from the UK, resulting in a write-down.

Boohoo said on Wednesday it would cease operations at its U.S. distribution centre in Pennsylvania by Nov. 11, just over a year after it started operations.

The group had previously described the site as a "gamechanger" as it would slash delivery times to American shoppers.

However, it will now fulfil all U.S. orders from its distribution centre in Sheffield, northern England.

It said the move would enable it to broaden its product offering for U.S. customers.



It will, however, result in a write-down on its balance sheet against the investments and costs associated with the U.S. operation as well as certain one-off exceptional cash costs.

Boohoo, whose shares have fallen 30% so far this year, said it will provide further details at its half-year results.

Source: Investing.com