JD Sports Fashion has confirmed it will close its distribution centre in Derby, East Midlands, resulting in the loss of 200 jobs.
Staff at the Derby Commercial Park facility were told on Friday (September 6) they would no longer be needed after the weekend, according to reports, following a consultation period that began in July.
A company spokesperson confirmed: “We have taken the difficult decision to close our Derby distribution centre and are working with everyone affected to ensure they receive full support during this difficult time.”
The sportswear giant, which has seen its fortunes rebound recently after a rocky start to the year, signed a 20-year lease on the newly built, 514,000-square-foot facility just three years ago.
The decision to close the site comes after a strategic review of the group’s global supply chain network “which explored all options” available to the company.
JD also operates a large distribution centre in Rochdale, which is close to the company’s head office in Bury and was not affected by the recent move.
In late August, JD Sports Fashion’s second-quarter trading update spoke of a “strong and active multi-brand model” achieving sales growth on an organic and like-for-like basis, of 8.3% and 2.4%, respectively, during the quarter.
Earlier this year, the company’s shares fell after it said it saw weak sales in the fourth quarter, with analysts speculating that Nike’s importance to the chain was a problem as the brand’s sales story faltered.
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