Manchester online fashion giant Boohoo said it has agreed a long-term lease for a new warehouse in Daventry which it said is expected to secure up to 500 jobs “and in the future create up to a further 1,000 jobs as capacity increases at the site.”

The new site will support the group’s expansion and adds capacity to its existing facilities in Burnley, Sheffield and Wellingborough.

“In aggregate, these sites will give the group net sales capacity in excess of £4 billion,” said Boohoo.

“The new warehouse is scalable, with the group expecting to invest over £50 million in the coming years, increasing capacity and offering the group operational flexibility as it grows.

“The deal is expected to secure up to 500 jobs and in the future create up to a further 1,000 jobs as capacity increases at the site.”

Boohoo said in March it would cut more than 400 companies from its supplier network following a report last year that was critical about labour practices at some of those businesses.

Boohoo published a list of 78 approved manufacturers operating across 100 sites in the UK — a big reduction from an estimated 500 suppliers identified in an independent review of the business by Alison Levitt QC last year.

Last September, Boohoo accepted the recommendations of the independent review which found major failings in its supply chain in England after newspaper allegations about working conditions and low pay, and outlined steps to tackle the problems.