LONDON, Sept 11 (Reuters) - British online fashion
retailer Boohoo 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.