River Island to close 33 stores in restructuring plan
River Island is set to shutter 33 stores as part of restructuring efforts.
The fashion retailer – which operates 230 UK stores – is also looking to reduce rents at a further 71 locations which are at risk of closure.
This comes amid poor sales performance for the retailer. The latest accounts for River Island showed a £33.2m pre-tax loss for the year ending 30th December 2023, while turnover declined by over 19% to £578.1m.
River Island blamed more customers choosing to shop online and higher costs for the decision to close the stores.
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.”
Creditors will begin to vote on the plan – which is being developed with PricewaterhouseCoopers – in August.
Earlier this year, River Island drafted in advisers from AlixPartners as it looked to cut costs and improve profits.