Boohoo to cease operations at Pennsylvania centre by Nov. 11
Boohoo had previously called site 39;complete gamechanger39;
Will return to fulfilling US orders direct from UK
To take writedown
Shares down 2

LONDON, Sept 11 Reuters Online fashion retailer Boohoo said on Wednesday it would stop supplying U.S. customers from a site in Pennsylvania and return to fulfilling orders from Britain, in a strategy reversal it said would lead to an unquantified writedown.

Boohoo shares were down 2 in early trade, extending 2024 losses to 32, after the British company said it would stop using the distribution centre by Nov. 11, just over a year after it started operations there. It said it would sublet its space at the centre, which is run by a third party.

CEO John Lyttle had previously described the site as a complete gamechanger as it would slash delivery times to shoppers in the U.S., Boohoo39;s largest overseas market.

However, the company said on Wednesday it would return to fulfilling all U.S. orders from its automated centre in Sheffield, northern England, enabling it to cut costs over the medium term and broaden its product offering to U.S. shoppers.

To us, the short life of the U.S. warehouse … is concerning, highlighting a naivety of the American market, along with a waste of time and resources, Shore Capital analysts said.

Boohoo said the move would result in a writedown on its balance sheet against the investments and costs associated with the U.S. operation,…