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Daily Record
7 hours ago
- Business
- Daily Record
Five River Island stores closing in Scotland named amid fashion firm's heavy losses
It was revealed last week that 33 shops across the UK are set to close. River Island has revealed the 33 shops across the UK that are set to close after mounting heavy losses due to a slump in trade. Five of the selected stores are in Scotland with three of our major cities being impacted. As a result of this shut down, hundreds of jobs are set to be lost. Additionally, 71 more stores are also said to be at risk as the family-owned fashion retailer is in talks with landlords over rent prices. Bosses off the chain have said these closures are due to a "migration of shoppers from high street to online" and the costs to run stores becoming higher. The huge shake-up will leave just nine of the retailer's stores in the UK retaining full rent payments. Included in the list of stores set for closure were five high street shops in Scotland. The stores set to close are Aberdeen Union Square, Edinburgh Princes Street, Glasgow Argyle Street, Glasgow Silverburn, and Kilmarnock. These shops are being closed as part of the fashion firm's formal restructuring proposal that is due to go to a creditor vote in August before being sanctioned by the High Court. The selected River Island stores set for closure are said to remain open until January 2026. This will be done so the firm can benefit from peak trading and realign its stock position. These stores are said to have been chosen as they are "no longer where the group customers shop", reports Retail Gazette. By keeping them open, this would "divert resources which are needed for the group to return to profit quickly." The documents submitted to the court also show the retailer splitting its store estate into seven categories. Of the 230 stores, 71 stores are subject to rent reductions, while nine will retain full rent payments. In the plans, 38 stores will face rent slashes of up to 75 per cent for three years, with 24 other stores set to move to a zero-rent model. Last week, chief executive Ben Lewis said: "River Island is a much-loved retailer, with a decades-long history on the British high street. "However the well-documented migration of shoppers from the high street to online has left the business with a large portfolio of stores that is no longer aligned to our customers' needs. "The sharp rise in the cost of doing business over the last few years has only added to the financial burden. We have a clear strategy to transform the business to ensure its long-term viability." "Recent improvements in our fashion offer and in-store shopping experience are already showing very positive results, but it is only with a restructuring plan that we will be able to see this strategy through and secure River Island's future as a profitable retail business." He added: "We regret any job losses as a result of store closures, and we will try to keep these to a minimum." River Island was founded in 1948 under the Lewis and Chelsea Girl brand before being renamed in the 1980s. The retailer currently employs around 5,500 people. According to the firm's most recent set of accounts, River Island fell to a £33.2million loss in 2023 after sales dropped by 19 per cent. Full list of River Island stores set for closure Aberdeen Union Square Basildon Bedford Beverley Birmingham Fort Blackburn Bolton Broughton Park Cannock Castleford Chesterfield Crewe Derby Doncaster Edinburgh Princes Street Fareham Gateshead Metrocentre Glasgow Argyle Street Glasgow Silverburn Grimsby Halifax Harrow Huddersfield Ipswich Kidderminster Kilmarnock Leamington Spa Loughborough Luton Middlesbrough Peterborough Southport Walsall Join the Daily Record WhatsApp community! Get the latest news sent straight to your messages by joining our WhatsApp community today. You'll receive daily updates on breaking news as well as the top headlines across Scotland. No one will be able to see who is signed up and no one can send messages except the Daily Record team. All you have to do is click here if you're on mobile, select 'Join Community' and you're in! If you're on a desktop, simply scan the QR code above with your phone and click 'Join Community'. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose 'exit group'.
Edinburgh Live
8 hours ago
- Business
- Edinburgh Live
Edinburgh Princes Street River Island set to close after 'major restructure'
Our community members are treated to special offers, promotions and adverts from us and our partners. You can check out at any time. More info An Edinburgh Princes Street clothes shop is set to close its doors following a major restructure. Fashion retailer River Island is shutting 33 of its stores - with bosses blaming rising costs. Five outlets will be closing up across Scotland including Edinburgh Princes Street, Aberdeen Union Square and Glasgow Argyle Street. Other stores include Glasgow Silverburn and Kilmarnock. The shops are preparing to close after January 2026 with 71 set for rent reduction discussions. Chief executive Ben Lewis said: "River Island is a much-loved retailer, with a decades-long history on the British high street. "However the well-documented migration of shoppers from the high street to online has left the business with a large portfolio of stores that is no longer aligned to our customers' needs. "The sharp rise in the cost of doing business over the last few years has only added to the financial burden. "We have a clear strategy to transform the business to ensure its long-term viability. Recent improvements in our fashion offer and in-store shopping experience are already showing very positive results, but it is only with a restructuring plan that we will be able to see this strategy through and secure River Island's future as a profitable retail business. "We regret any job losses as a result of store closures, and we will try to keep these to a minimum." This is the full list of 33 stores that will shut: Aberdeen Union Square Basildon Bedford Beverley Birmingham Fort Blackburn Bolton Broughton Park Cannock Castleford Chesterfield Crewe Derby Doncaster Edinburgh Princes Street Fareham Gateshead Metrocentre Glasgow Argyle Street Glasgow Silverburn Grimsby Halifax Harrow Huddersfield Ipswich Kidderminster Kilmarnock Leamington Spa Loughborough Luton Middlesbrough Peterborough Southport Walsall
Scottish Sun
10 hours ago
- Business
- Scottish Sun
River Island set to axe five Scots stores – check if yours is closing
A further 70 UK Stores are at risk amid a huge shake-up SHUTTERS DOWN River Island set to axe five Scots stores – check if yours is closing Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) RIVER Island has confirmed five Scottish stores that will shut following a major restructure. The fashion retailer has revealed 33 branches across the UK will close including Aberdeen Union Square, Glasgow Argyle Street and Edinburgh Princes Street. Sign up for Scottish Sun newsletter Sign up 1 River Island has confirmed the 33 branches that will shut Credit: Getty Other Scottish branches will shut in Glasgow Silverburn and Kilmarnock This is the full list of 33 stores that will shut: Aberdeen Union Square Basildon Bedford Beverley Birmingham Fort Blackburn Bolton Broughton Park Cannock Castleford Chesterfield Crewe Derby Doncaster Edinburgh Princes Street Fareham Gateshead Metrocentre Glasgow Argyle Street Glasgow Silverburn Grimsby Halifax Harrow Huddersfield Ipswich Kidderminster Kilmarnock Leamington Spa Loughborough Luton Middlesbrough Peterborough Southport Walsall The 33 shops earmarked for closure will stay open until January 2026 to make the most of peak trading, Drapers reported. The closures come as River Island carries out a major restructuring of its store estate. The future of a further 70 stores is at risk and dependant on agreements being reached with landlords to slash rent payments. The retailer is reportedly set to split its store estate into seven categories of closures and rent reductions. Only nine stores are planned to keep paying full rent, while 38 could see rent reductions of up to 75% for three years. Meanwhile, 24 stores could move to a zero-rent model. River Island currently employs around 5,500 workers across the UK, but has not said how many jobs are at risk due to the closures. UK Retail Shake-Up: Superdry and More The retailer drafted in advisers from PricewaterhouseCoopers (PwC) just weeks ago to come up with money-saving solutions. The move came off the back of poor financial results. Accounts for River Island Clothing Co for the year ending December 30, 2023, showed the firm made a £33.2million pre-tax loss. Then the turnover during the following 12 months fell by more than 19% to £578.1million. In a statement issued last week, Ben Lewis, chief executive officer, said: "River Island is a much-loved retailer, with a decades-long history on the British high street. "However, the well-documented migration of shoppers from the high street to online has left the business with a large portfolio of stores that is no longer aligned to our customers' needs. "The sharp rise in the cost of doing business over the last few years has only added to the financial burden." Earlier this week we told how major high street retailer The Original Factory Shop announced it is closing three Scottish stores this week, with a fourth set to shut next month. The retail chain sells a range of discounted products, like cleaning supplies, travel items and even some beauty products. Customers can also pick up pet products, jewellery, drinks, perfume and footwear. However, bosses have revealed that they are pulling down the shutters on nine shops across the UK this week. This includes Scottish branches in Perth, as well as Arbroath, Angus, and Peterhead, Aberdeenshire. All three stores will close for good on Saturday, June 28. A fourth store in Cupar, Fife, will also close for good next month on Sunday, July 27.
