River Island at risk of collapse as high street favourite takes drastic action
The company employs 5,500 people and has already started making redundancies
River Island has appointed advisers from PricewaterhouseCoopers (PwC) to draw up a plan in a bid to save the company's 230 High Street branches. The clothing retailer, which employs 5,500 people, is taking action after reporting £32.2 million losses for 2023.
PwC will draw up a formal restructuring plan in a bid to prevent the chain closing down, reports Sky. River Island has been part of the UK landscape since 1948.
It was founded by Bernard Lewis and was originally called Lewis and Chelsea Girl. It is now run by CEO Ben Lewis, nephew of Bernard Lewis, who took over in February having previously held the post for 10 years before stepping down in 2019.
The company has already made redundancies at its head office in London in departments including buying, merchandising and HR. In 2023, the company saw a 15 per cent drop in sales and a 19 per cent fall in turnover after making £7.5million profit in 2022.
In its latest accounts, River Island Holdings Limited said: "The market for retailing of fashion clothing is fast changing with customer preferences for more diverse, convenient and speedier shopping journeys and with increasing competition especially in the digital space.
"The key business risks for the group are the pressures of a highly competitive and changing retail environment combined with increased economic uncertainty.
"A number of geopolitical events have resulted in continuing supply chain disruption as well as energy, labour and food price increases, driving inflation and interest rates higher and resulting in weaker disposable income and lower consumer confidence."
Bernard Leiws originally started his business as a fruit and veg stall in Notting Hill, using a site bombed during World War Two. It quickly became The Wool Shop then a chain of nine stores called Lewis Seperates with its first in-house designed clothes on sale from 1950.
The chain rebranded as Chelsea Girl in 1970 and became River Island in 1988. It opened its first overseas branches in 1993 and was one of the first brands to start selling online.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scottish Sun
4 hours ago
- Scottish Sun
Huge fashion chain with 20 Scottish stores at risk of collapse as thousands of jobs in danger
A decision could be made in weeks CLOSURE FEARS Huge fashion chain with 20 Scottish stores at risk of collapse as thousands of jobs in danger Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A MAJOR fashion train with 20 stores across Scotland is at risk of collapse. Thousands of jobs are at risk at River Island where bosses have called in experts to put together a restructuring plan. Sign up for Scottish Sun newsletter Sign up 3 River Island has twenty stores across Scotland Credit: Alamy 3 The chain has called in a firm to organise a restructure Credit: Alamy The chain has reportedly hired PricewaterhouseCoopers (PwC) to help manage the situation, reports Sky News. River Island's official accounts for 2023 show the retailers made a £33.2m loss before tax. And their turnover plummeted by 19 per cent during the same time. No decision has yet to be made but it is understood a restructuring plan could be published in weeks. Businesses often put together a restructuring plan to prevent them from becoming insolvent and going out of business. The firm has been facing pressures from the online market where punters can buy their clothes quicker. Their most recent accounts statement to Companies House blamed "global events" for supply chain issues. It read: "The market for retailing of fashion clothing is fast changing with customer preferences for more diverse, convenient and speedier shopping journeys and with increasing competition especially in the digital space. "The key business risks for the group are the pressures of a highly competitive and changing retail environment combined with increased economic uncertainty. Final sales begin as popular clothing brand closes all stores leaving 'devastated' shoppers scrambling for alternative "A number of geopolitical events have resulted in continuing supply chain disruption as well as energy, labour and food price increases, driving inflation and interest rates higher and resulting in weaker disposable income and lower consumer confidence." River Island has twenty stores north of the border. A spokesperson for the store declined to comment to Sky.
Daily Mirror
10 hours ago
- Daily Mirror
River Island at risk of collapse as high street favourite takes drastic action
The company employs 5,500 people and has already started making redundancies River Island has appointed advisers from PricewaterhouseCoopers (PwC) to draw up a plan in a bid to save the company's 230 High Street branches. The clothing retailer, which employs 5,500 people, is taking action after reporting £32.2 million losses for 2023. PwC will draw up a formal restructuring plan in a bid to prevent the chain closing down, reports Sky. River Island has been part of the UK landscape since 1948. It was founded by Bernard Lewis and was originally called Lewis and Chelsea Girl. It is now run by CEO Ben Lewis, nephew of Bernard Lewis, who took over in February having previously held the post for 10 years before stepping down in 2019. The company has already made redundancies at its head office in London in departments including buying, merchandising and HR. In 2023, the company saw a 15 per cent drop in sales and a 19 per cent fall in turnover after making £7.5million profit in 2022. In its latest accounts, River Island Holdings Limited said: "The market for retailing of fashion clothing is fast changing with customer preferences for more diverse, convenient and speedier shopping journeys and with increasing competition especially in the digital space. "The key business risks for the group are the pressures of a highly competitive and changing retail environment combined with increased economic uncertainty. "A number of geopolitical events have resulted in continuing supply chain disruption as well as energy, labour and food price increases, driving inflation and interest rates higher and resulting in weaker disposable income and lower consumer confidence." Bernard Leiws originally started his business as a fruit and veg stall in Notting Hill, using a site bombed during World War Two. It quickly became The Wool Shop then a chain of nine stores called Lewis Seperates with its first in-house designed clothes on sale from 1950. The chain rebranded as Chelsea Girl in 1970 and became River Island in 1988. It opened its first overseas branches in 1993 and was one of the first brands to start selling online.
Wales Online
10 hours ago
- Wales Online
Huge fashion chain with 230 stores River Island at risk as it calls in help
Huge fashion chain with 230 stores River Island at risk as it calls in help The company has called in advisers to draw up a plan to save the business River Island clothing store shop River Island has appointed advisers from PricewaterhouseCoopers (PwC) to draw up a plan in a bid to save the company's 230 High Street branches. The clothing retailer, which employs 5,500 people, is taking action after reporting £32.2 million losses for 2023. PwC will draw up a formal restructuring plan in a bid to prevent the chain closing down., reports Sky. River Island has been part of the Uk landscape since 1948. It was founded by Bernard Lewis and was originally called Lewis and Chelsea Girl.l It is now run by CEO Ben Lewis, nephew of Bernard Lewis, who took over in February having previously held the post for 10 years before stepping down in 2019. The company has already m,ade redundancies at its head office in London in departments including buying, merchandising and HR. In 2023, the company saw a 15 per cent drop in sales and a 19 per cent fall in turnover after making £7.5million profit in 2022. In its latest accounts, River Island Holdings Limited said: "The market for retailing of fashion clothing is fast changing with customer preferences for more diverse, convenient and speedier shopping journeys and with increasing competition especially in the digital space. Article continues below "The key business risks for the group are the pressures of a highly competitive and changing retail environment combined with increased economic uncertainty. "A number of geopolitical events have resulted in continuing supply chain disruption as well as energy, labour and food price increases, driving inflation and interest rates higher and resulting in weaker disposable income and lower consumer confidence." Bernard Leiws originally started his business as a fruit and veg stall in Notting Hill, using a site bo,mbed during World War Two. It quickly became The Wool Shop then a chain of nine stores called Lewis Seperates with its first in-house designed clothes on sale from 1950. Article continues below The chain rebranded as Chelsea Girl in 1970 and became River Island in 1988. It opened its first overseas branches in 1993 and was one of the first brands to start selling online.
