Burberry denies £50m Leeds investment is on hold

BURBERRY has had to deny that it has put the brakes on its £50m Leeds manufacturing facility plans but has admitted that it is looking again at delivery timelines.

Chairman Sir John Peace said at the company’s AGM yesterday that the company was revisiting the timeframe for the South Bank development following the Brexit decision.

He said that the plans would be slowed as Burberry looked at the “economic consequences of what has happened,” reported The Guardian.

The luxury brand had previously intended to file applications for the site, which would create 1,000 jobs.

Since then the company has said it will wait before submitting them to assess the economic situation.

However the company has insisted that the trenchcoat factory is on track and giving assurances to local authorities that the much-anticipated factory would go ahead.

Cllr Judith Blake, leader of Leeds City Council, said: “We have received strong assurances from Burberry that their plans for their new operation in Leeds are very much still on track.”

It was reported in May 2016 that Burberry was in talks to cut jobs and reduce its product ranges in an attempt to save £100m a year. This followed a 10% drop in profitability.

Earlier this week it was announced that Yorkshireman and chief executive Christopher Bailey would be moving into the role of president, with Marco Gobbetti taking over as chief executive. He will be handling day-to-day management said the firm.