River Island to close 33 shops
River Island plans to close 33 shops in the UK in a move which puts hundreds of jobs at risk.The clothing retailer said more people shopping online and higher costs to run stores were behind its proposals to creditors.It also wants its landlords to cut rents at a further 71 stores which are at risk.The family-owned retailer currently has 230 shops and employs about 5,500 people, but has suffered heavy financial losses.
Ben Lewis, chief executive of River Island, said that although River Island is "a much-loved" British high street retailer, more online shopping means it has "a large portfolio of stores that is no longer aligned to our customers' needs".He added that a "sharp rise in the cost of doing business over the last few years has only added to the financial burden".He said a turnaround plan was in place, but restructuring was also necessary."We regret any job losses as a result of store closures, and we will try to keep these to a minimum," he added.River Island made a £33.2m loss in 2023 after sales fell 19%, according to its most recent set of accounts.
The chain said it intends to consult employees over the possible job losses, and will redeploy staff where possible.No head office staff will be directly affected by the proposed closures, a company source said.Creditors will start to vote on the plan on 4 August, and a court will decide whether to approve the plan on 7 August.River Island was founded in 1948 under the Lewis and Chelsea Girl brand before being renamed in the 1980s.
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