High street fashion retailer River Island has revealed plans to close 33 stores across the UK within the next six weeks as part of a major restructuring initiative. The company, facing ongoing financial challenges, will also negotiate reduced rents on 71 additional stores to help avoid entering administration.
Out of its 223 stores in the UK and Ireland, the closures will affect only UK locations, with 122 stores remaining unaffected by the restructuring. River Island has requested landlords to reduce rents for three years and potentially suspend payments on some units to manage losses more effectively. This plan received approval from a High Court judge in August.
Ben Lewis, CEO of River Island, emphasized the company’s commitment to transformation, stating: “We have a clear transformation strategy to ensure the long-term viability of the business. This decision gives us a strong platform to deliver on that vision. Recent improvements in our fashion offerings and shopping experience are beginning to show positive results. The restructuring will help us align our store estate with our customers’ evolving needs.”
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Matthew Weaver KC, representing River Island during court proceedings, highlighted key challenges the retailer faces, including declining footfall and sales driven by a competitive retail landscape and shifting consumer habits towards online shopping. He also cited ongoing supply chain disruptions and rising costs in energy, labor, and materials, which have made River Island’s current cost structure unsustainable.
Founded in 1948 under the Lewis and Chelsea Girl brand and renamed in the 1980s, River Island employs approximately 5,500 people. Despite the closures, the company aims to emerge stronger and more competitive in today’s evolving retail environment.