River Island, a popular UK retail chain, is scheduled to shut down 33 stores by the end of January as part of its business restructuring efforts due to significant financial losses. The High Court had approved the company’s restructuring plan earlier in August. In addition to the store closures, River Island will also negotiate rent reductions and eliminate debt for 71 other stores out of its total 200 stores across the country. Approximately 5,500 employees work at River Island, and this move will not impact 122 stores.
CEO of River Island, Ben Lewis, expressed confidence in the company’s transformation strategy to secure its long-term sustainability. He emphasized that recent enhancements in their fashion offerings and shopping experience have begun to yield positive results. The restructuring plan aims to align the store network with customer preferences. Lewis acknowledged the support received from suppliers, landlords, and stakeholders, underscoring their belief in River Island’s future success.
Lewis had previously highlighted the challenges faced by the business, citing the shift towards online shopping and the mismatch between store locations and customer demands. Rising operational costs in recent years exacerbated the financial strain on the company. River Island recorded a pre-tax loss of £33.2 million in 2023, with a 19% decline in sales. Subsequently, losses almost doubled to £64 million in 2024 according to financial reports.
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