19 hours ago
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
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