River Island has announced plans to close 33 of its 230 stores, with a further 71 at risk under a restructuring programme that could put more than 1,000 jobs in jeopardy. The family-owned fashion retailer, which employs around 5,500 people, cited a shift in consumer behaviour towards online shopping and rising costs as the driving forces behind the drastic measures.
The company, which swung to a £33.2m loss in 2023 after sales fell by over 19% to £578.1m, is working with advisory firm PricewaterhouseCoopers on the plan. Creditors are expected to vote on the proposal in August. Chief executive Ben Lewis expressed regret over potential job losses, stating the company would “try to keep these to a minimum.”
Lewis noted that the “migration of shoppers from the high street to online” had left the business with a store portfolio misaligned with customer needs, while a sharp rise in operating costs added to the financial burden. The restructuring follows a cost-cutting effort launched in January, which included redundancies at its London head office.
River Island’s troubles mirror a broader retail crisis, with Poundland recently announcing a similar restructuring that could close up to 150 stores, and luxury brand Mulberry seeking £20m to fund a turnaround after reporting a £23m loss. Retailers face pressure from rising wages, taxes, and competition from cheap online sellers like Shein and Temu, while consumer spending remains subdued.
Insolvency expert Matthew Padian of Stevens & Bolton predicted more retailers would turn to restructuring plans to reduce their store estates, adding: “There will be more coming down the track as it doesn’t look like it is getting any easier for retailers.”
