River Island to shut 33 stores with hundreds of jobs at risk

River Island is reportedly planning to shutter 33 shops as part of a restructuring plan that would see hundreds of jobs at risk, Sky News has reported.  

The family-owned group, which currently operates around 230 stores, confirmed the proposals on Friday (20 June) following reports that it was working with consultants at PwC. 

As part of the turnaround plan, the group is also seeking to negotiate lower rents for 71 sites. 

In its latest statement, chief executive Ben Lewis named the shift to online shopping and rising business as the main factors that have left River Island with an “overextended” physical footprint. 

According to Lewis, the restructuring plan aims to “secure River Island’s future as a profitable retail business”.

River Island employs around 5,500 people, but has not yet disclosed how many roles could be lost or the scale of rent reductions being negotiated with landlords. 

Lewis added: “We regret any job losses as a result of store closures, and we will try to keep these to a minimum.”

Accounts for River Island for the year to 30 December 2023 show a pre-tax loss of £33.2m and a turnover of £578.1m, down more than 19% year-on-year.

In filings at Companies House, parent company River Island Holdings Limited warned of “increasing competition especially in the digital space”, along with supply chain disruption, inflation, and declining consumer confidence.

In his full statement, 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.”