River Island has announced plans to close 33 of its 230 stores, with a further 71 at risk, as part of a restructuring programme that could affect more than 1,000 jobs. The family-owned company, which employs around 5,500 people, cited the shift of shoppers from high street to online and rising costs as reasons for the drastic measures.
The plan, developed with advisory firm PricewaterhouseCoopers, will be voted on by creditors in August. It involves the closure of 33 stores, while the fate of 71 others depends on negotiations with landlords to secure better rental terms. Chief executive Ben Lewis expressed regret over potential job losses and said the company would try to minimise them.
River Island reported a loss of £33.2 million in 2023, compared to a profit of £2 million in 2022, as sales fell by over 19% to £578.1 million. In January, the group launched a cost-cutting programme, including redundancies at its London head office. The retailer, originally known as Chelsea Girl, has been operating since the 1940s.
The announcement follows similar restructuring moves by other retailers, including Poundland, which plans to close up to 150 stores, and Mulberry, which is seeking to raise £20 million to fund a turnaround. High street retailers face pressure from rising wages, taxes, and competition from online sellers like Shein and Temu.
Matthew Padian, an insolvency expert at Stevens & Bolton, predicted more retailers would adopt restructuring plans to reduce their store estates, as the system introduced during the pandemic becomes more familiar. He noted that conditions are not expected to improve for retailers.
