River Island, a familiar name on Britain’s high streets since 1988, is closing 11 stores today, January 31, marking another turbulent chapter for the fashion retailer amid serious financial challenges. This latest wave of closures is part of a broader survival plan aimed at stabilizing the company’s future.
Last year, a High Court-approved restructuring plan allowed River Island to avoid administration, focusing on closing 33 stores and negotiating rent reductions across 71 locations. Among the stores closing today are sites in Gloucester, Barnstaple, and Poole in the South West.
As part of the turnaround strategy, landlords have been asked to accept reduced rents for up to three years, with some properties potentially paying no rent at all. This move is a desperate attempt to stem mounting losses amid a shifting retail landscape.
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The shutdowns, impacting stores across England, Scotland, Wales, and Northern Ireland, deliver another blow to local shoppers and town centres already struggling to weather economic challenges.
River Island reported a pre-tax loss of £32.3 million last year, with revenues dropping by 15% to £578.1 million. Matthew Weaver KC, representing River Island in court, cited the retailer’s inability to reverse its financial decline, driven by a highly competitive and evolving market and the shift from physical stores to online shopping.
Ben Lewis, River Island’s CEO, acknowledged the retail sector’s transformation: “River Island is a much-loved retailer with a long history on the British high street. However, the migration of shoppers to online channels has left us with a store portfolio that no longer matches customer demand.”
He added, “Rising operational costs have compounded the pressures. We have a clear strategy to transform our business and secure its long-term sustainability.”
Lewis highlighted that recent improvements to the fashion range and in-store experience are encouraging but emphasized that restructuring is essential to realize the company’s turnaround plan. He expressed regret over job losses and committed to minimizing the impact on employees.
The restructuring follows a 19% drop in sales and a significant financial shortfall. River Island employs over 5,000 people nationwide and is reviewing further closures while seeking to redeploy staff where possible.
Founded in Exeter in 1988 initially as a menswear retailer, River Island drew its name from founder Leonard Lewis’s experiences on the Thames, after which the Chelsea Girl brand was rebranded the same year under the new name to reflect a broader fashion offer.