ASOS to Close Atlanta Distribution Centre
ASOS to Close Atlanta Distribution Centre

ASOS to Close Atlanta Distribution Centre

News summary

ASOS Plc announced plans to close its Atlanta distribution center in the second half of 2025, shifting U.S. fulfillment to its automated UK center in Barnsley and a smaller local site. This decision is part of ASOS's broader strategy to boost profitability amidst increased competition from budget-friendly brands. The company anticipates a one-time impairment charge of approximately £190 million due to the closure, but expects annualized EBITDA benefits of £10 million to £20 million from fiscal year 2026. Seven employees directly affected by the closure will be offered alternative roles, and efforts will be made to redeploy several hundred third-party logistics staff. ASOS remains optimistic about the U.S. market, believing this new operating model will enhance customer service and return on investment. The Atlanta site will be put up for sale following its closure, as the company continues to seek growth in the region.

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