Manchester-based online fashion firm Boohoo Group plc said it would close its US distribution centre in Pennsylvania and fulfil all US orders from its automated UK distribution centre in Sheffield.  

Boohoo said this would give US customers a greater choice of its products, as customers there previously were being offered only 60% of the styles on sale in the UK.

The company said it “remains excited about the opportunity in the US” and has been developing other market strategies, including the recent launch of its Nasty Gal brand  in Nordstrom stores. It said it was also in advanced talks with major US brands with regard to new routes to market.

“The moves will result in a write-down on the group’s balance sheet against the investments and costs associated with the US operation as well as certain one-off exceptional cash costs,” Boohoo said.

“Importantly, these changes will result in a significant reduction in ongoing costs over the medium term. Further details will be outlined in the half year results.”