A prominent retailer in the UK is preparing to shut down multiple stores by the end of January. River Island is set to close 33 stores as part of its restructuring efforts following significant financial losses. The High Court approved the company’s restructuring plan back in August. Apart from store closures, 71 stores will benefit from rent reductions and debt write-offs. River Island, which currently operates over 200 stores nationwide, with 122 unaffected, and has a workforce of around 5,500 employees.
Ben Lewis, the CEO of River Island, expressed confidence in the business’s future, stating, “We have a clear strategy for transformation to ensure the long-term sustainability of the company.” He highlighted recent enhancements in their fashion offerings and shopping experiences, emphasizing the positive impact of the restructuring plan in aligning their store network with customer preferences. Lewis also acknowledged the cooperation of suppliers, landlords, and other stakeholders in supporting River Island’s future endeavors.
In an earlier statement in June, Lewis acknowledged the challenges faced by River Island due to the shift towards online shopping, resulting in a store portfolio that no longer meets customer demands. He noted the escalating costs of operations in recent years, contributing to the financial strain on the business. The company reported a pre-tax loss of £33.2 million in 2023, with sales declining by 19%, and the losses escalating to £64 million in 2024, as per its financial records.