Burberry has shelved plans to create a new factory in an historic Leeds building, which would have created 200 jobs and returned production of its iconic check pattern to the "home of the trench coat".
The £50m investment has been delayed for the time-being while uncertainty over a Brexit deal looms.
The company has allowed the option to lapse on the Temple Works building where it had planned to regenerate the UK's textile industry with a new factory, due to the difficulty of making the Grade I listed building suitable for use. Plans for the site had been set to create around 200 new jobs in the area.
But a spokesperson said that the brand remains "committed to the city and the region". The company could consider another site in Leeds for the project. "We are continuing to think through our plans for the manufacturing and weaving facility in Leeds," the spokesperson added.
Chief finance officer Julie Brown told the Financial Times the group had "decided to take our time" over the factory decision, but she confirmed the move of Burberry's business services to Leeds will go ahead as planned.
Back in May, then-chief executive Christopher Bailey said moving the business services to the city "reinforces our commitment to the UK and to Yorkshire, home of our iconic trench coat".
In an official statement, a Burberry spokesperson said: "There is no change to our commitment to manufacturing in Yorkshire. As we have said before, we are continuing to think through our plans for the manufacturing and weaving facility in Leeds."
The brand reported increased revenues this morning as sales improved in China and the UK.