Debenhams Considers Selling PrettyLittleThing, Closing Burnley Hub Risking 1,251 Jobs

Debenhams, the company formerly known as Boohoo, is considering the sale of its youth-oriented brand PrettyLittleThing (PLT) and the closure of distribution centers in Burnley and the US as part of a broader turnaround plan led by CEO Dan Finley. The potential closure of the Burnley distribution site could result in the loss of over 1,200 jobs, with the Burnley facility alone employing more than 3,000 people. The company reported a 10% decline in overall sales to £2.3 billion, with its youth brands, including Boohoo and PLT, suffering a 22% drop to £1.5 billion, while the Debenhams arm saw a 34% sales increase. Losses widened to approximately £264 million due to one-off costs such as warehouse writedowns and restructuring fees totaling £199 million. Finley emphasized that Debenhams is taking decisive measures to address sustained underperformance, including a 30% workforce reduction, halving stock levels, and shifting youth brands toward a marketplace model to improve profitability. Despite the challenges, all of Debenhams' brands are reportedly trading profitably on an adjusted EBITDA basis, with expectations for improved earnings in early 2026.