River Island set to close 33 stores
River Island is planning to close 33 of its 230 stores as part of a restructuring plan.
In addition, the family-owned fashion retailer is wanting landlords to reduce rents on a further 71 shops, which could also be at risk of closure.
River Island blamed more people shopping online and the higher costs of running stores for the decision.
Ben Lewis, chief executive of River Island, said: “River Island is a much-loved retailer with a decades long history on the British high street. However, the well documented migration of shoppers from the high street to online has left the business with a large portfolio of stores that is no longer aligned to our customers’ needs. The sharp rise in the cost of doing business over the last few years has only added to the financial burden.”
Never Miss a Retail Update!According to accounts filed at Companies House, the business made a loss of £33.2 million in 2023 after sales dropped by 19%.
Creditors will start to vote on the plan, which is being developed with help from PricewaterhouseCoopers, in August
River Island said it will consult staff over any potential job cuts and will redeploy employees where possible.
Lewis added: “We regret any job losses as a result of store closures, and we will try to keep these to a minimum.”
River Island employs around 5,500 people.
