Fast fashion giant Boohoo is understood to be mulling the closure of its controversial Leicester “model factory” amid plans to drive efficiency at the business.

The e-tailer said that it had entered into a consultation last month regarding the possible closure of the Thurmaston Lane facility, with a relocation of its operations believed to be in the process.

The news was confirmed to Drapers by a spokesperson for the company, who told the media outlet: “As in any retail business, the role of our sites continues to evolve over time and, following significant investments at our Sheffield distribution centre and the opening of a new distribution centre in the US, we must now take steps to continue to ensure we are a more efficient, productive and strengthened business.”

The statement continued: “All these factors have led us to make the difficult decision to consider relocating some of the operations at Thurmaston Lane and consider the closure of the site in due course. We are now in a period of consultation and are working closely with all affected colleagues to ensure they are fully supported during this process.”

Opened in January 2022, the so-called “model factory” came under scrutiny following a BBC Panorama investigation in late 2023, which revealed that a number of orders placed through the factory were actually being produced in several factories in both Morocco and Leicester.

It built on further allegations mounted against Boohoo in recent years, including that of unfair labour claims against some of its facilities.