High street chain River Island is planning to shut 33 stores, with 71 more at risk, putting thousands of jobs on the line
The chain plans to close 33 of its UK stores, putting hundreds of jobs at risk as part of a major restructuring plan, according to reports.
The family-owned retailer is aiming to reverse a recent slump in trading with radical measures, including store closures and re-negotiations on rent.
Sky News reports that a further 71 stores face potential closure depending on talks with landlords to secure better rental terms.
River Island, which employs around 5,500 people, was founded in 1948 under the Lewis and Chelsea Girl brand before rebranding in the 1980s.
It is now headed up by CEO Ben Lewis, the nephew of its founder, who took over his second stint as the head of the family firm in February.
He previously held the position for almost a decade before stepping down in 2019.
A High street chain is planning to shut 33 stores, with 71 more at risk, putting thousands of jobs on the line. Pictured: Stock image
The chain is set to close 33 of its UK stores, putting hundreds of jobs at risk as part of a major restructuring plan, according to reports. Pictured: stock image
To manage the turnaround, the retailer has brought in advisers from PwC to oversee the restructuring process.
The proposals will be put to a vote by creditors, those owed money by River Island, in August, with fresh funding expected to support the business’s recovery if approved.
The high street giant is among several fashion chains hit hard by weaker consumer spending and fierce competition from cheaper online rivals like Shein.
In its latest accounts, River Island reported a £33.2 million loss for 2023, with sales down 19%, highlighting the challenging trading environment.
River Island has been contacted for comment.
In January, the firm introduced a redundancy programme at its London head office in a bid to save money in the context of increasingly pressured finances.
The job cuts affected a range of employees across buying, merchandising and HR, but the total number of losses was not confirmed by the retailer.
Company accounts showed the company was £33.2 million in the red for the 12 months to December 30, 2023.
It also suffered a 15 percent decline in sales and a 19 percent fall in turnover.
The year before, River Island had a total profit of £7.5 million.