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River Island set to close popular branch in DAYS as 33 more stores face closure and 70 at risk
We also share why the iconic fashion brand has been having a hard time
SHUTTING UP SHOP River Island set to close popular branch in DAYS as 33 more stores face closure and 70 at risk
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RIVER Island will close a popular branch in days as 33 more stores face closure and 70 are at risk.
The popular fashion brand, sported by the likes of Paris Fury, will close its branch in Banbury this Saturday, June 28.
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The store is set to close in a matter of days
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News of the closure was shared on social media, with locals sharing the high street will be like a "ghost town" after its departure.
Another shopper added: "If people stopped buying online it wouldn't happen."
While a third added: "Gutted…..love River Island."
Last week bosses at the chain revealed plans to shut 33 of its 230 stores, pending approval.
A further 70 stores are also at risk, with its future depending on agreements being reached with landlords to cut rent agreements.
Just weeks ago the British retailer drafted in advisers from PricewaterhouseCoopers (PwC) to come up with money saving solutions for the business.
The brand currently employs 5,500 workers but it is not yet clear how many roles will be lost following the closures.
River Island currently employs around 5,500 workers, although it has not said how many jobs are at risk should the initial 33 branches shut.
Creditors, who River Island owes money to, will vote on any restructuring plans in August.
In a statement issued last Friday, Ben Lewis, chief executive officer, said cited the "well-documented migration of shoppers from the high street" for its troubles.
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He added: "The sharp rise in the cost of doing business over the last few years has only added to the financial burden."
The retailers most recent filing on Companies House also laid bear its struggle over the past few years.
It read: "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."
The store has already closed a number of branches across the UK.
That includes a site a branch in Willows Place, Corby closed in April and a separate site in Vicar Lane Shopping Centre in Chesterfield closed in the same month.
TROUBLE ON THE HIGH STREET
River Island is just one of countless retailers reducing their estate in the face of dwindling sales and rising costs.
Poundland will close 68 stores following its £1 sale to US investmet firm Gordron Brothers.
But even before this announcement, the bargain chain had already planned to close 18 stores,
Elsewhere, Hobby Craft and The Original Factory Shop have made a series of closures in the past few weeks.
Both were bought by Modella Capital, with the investment firm making a series of closures to help shore up costs at the respective groups.
