Burberry puts brakes on new UK factory after Brexit vote
Burberry's plans to build a new manufacturing facility in Leeds have been put on hold while the British luxury brand assesses the impact of the vote to leave the EU.
According to Reuters the £50m plant will still go ahead but is on ice for now following the drop in corporate confidence after the surprise win for the Leave camp in the EU referendum on 23 June.
Chairman John Peace told Reuters reporters: "We’ve certainly put it on hold for the moment, but that might be for a very short period of time,” he said. “It depends on how events unfold. It’s not in terms of reversing our decision to do it or not. But it’s the speed at which we invest.”
Burberry had announced in November that it planned to build the facility, which will employ 1,000 people and be dedicated to production of its signature trench coats. Work was due to start this year and be complete by 2019.
It has been a busy news week for Burberry, which started with the announcement that chief executive and chief creative officer Christopher Bailey would assume the position of president and chief creative officer from next year. Marco Gobbetti of LVMH-owned Céline will join the business as chief executive.
Burberry then issued its latest trading statement in which it revealed flat sales as the challenging conditions for the luxury market as a whole continue. However the business is making positive progress in digital and mobile in particular and customers were responding well to new product innovations such as its runway rucksack and lightweight outerwear.
