High-street fashion giant River Island is set to close its two Gloucestershire stores — in Cheltenham and Gloucester — by the end of January 2025 as part of a wider UK-wide restructuring.
Last summer, River Island revealed plans to shutter around 33 stores across the UK after receiving High Court approval for a major overhaul aimed at averting insolvency. Gloucester’s Kings Walk branch had been earmarked for closure by January, alongside stores in Hereford and Oxford. Until recently, the Cheltenham High Street store was excluded, but signs have now confirmed its closure effective January 23.
The company secured court approval for its restructuring plan in August 2024, following serious concerns the retailer could enter administration without urgent changes. The plan also includes rent reductions for 71 other stores to improve financial sustainability.
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At the court hearing, River Island’s legal counsel, Matthew Weaver KC, outlined the financial challenges driving the restructuring. He pointed to a sustained decline in customer footfall and sales caused by intense competition, a shift toward online shopping, ongoing geopolitical issues disrupting supply chains, and rising costs of energy, labor, and other expenses. These factors combined left the company facing an unsustainable cost base.
The rescue plan received backing from five of the ten creditor classes after an August 1 meeting. No objections were raised during the court hearing, allowing the judge, Sir Alastair Norris, to approve the plan. Without it, River Island would likely have been forced into insolvency, risking the sale of its stock, brand, and intellectual property.
Weaver further revealed that the company was expected to default on its debts by late August or early September 2024, with a projected shortfall exceeding £43 million. While River Island operates 223 stores across the UK and Ireland, none of the Irish stores are slated for closure.
Weaver also warned of potential efforts by some landlord creditors to leverage the restructuring plan for greater financial gain. He emphasized that the plan’s purpose is to tackle River Island’s core financial issues through operational improvements, cost-cutting, and strategic investments, ultimately aiming to restore profitability, improve cash flow, and protect jobs.
Founded in 1948 under the Lewis and Chelsea Girl brand before rebranding in the 1980s, River Island currently employs around 5,500 staff members. The Gloucestershire closures mark a significant adjustment as the company positions itself for long-term viability in a rapidly changing retail landscape.