River Island loss widens to £64m as restructuring takes hold

River Island has reported a pre-tax loss of £64m for the 52 weeks ended 28 December 2024, up from a loss of £33.2m the prior year, as the group saw its restructuring plan begin to take hold. It comes as turnover for the year fell by 7.1% to £537.0m, down from £578.1m in 2023, although this was partly offset by a fall in cost of goods sold.

The group said trading had deteriorated due to inflationary pressures, declining customer volumes and reduced high street footfall. It also highlighted stores that had become loss making or marginal because of their size, location or rental costs that were “significantly above” prevailing market levels, meaning so the rent it was paying “is no longer commercially viable for the level of footfall”.

Nonetheless, the retailer managed to deliver “significant” savings across its operating cost base amid a restructuring, with staff costs down 5.3% to £114.9m. Distribution, property and head office savings helped reduce distribution and administrative costs to £51m from £62.6m.

The board also focused on working capital during the year, cutting stock by 16%, which helped it end the period with cash of £41.8m, representing an outflow of £10m.

Over the period, a review of group debtors led the company to make a £35.7m non-cash provision against inter-company debts judged to be unrecoverable. This was the main driver of the increased loss, according to the group, alongside a £5.5m reduction in trading profit and lower interest income.

Results were also affected by a “significant” post balance sheet event: a formal restructuring plan under Part 26A of the Companies Act 2006, approved by the High Court on 8 August 2025. The plan reduces the size of the retail estate, secures new funding and lowers administrative and distribution costs. The company said the move would enable a “step change” in store profitability and ensure sufficient liquidity through to 2028.

River Island said it is also implementing a broader transformation programme to reduce costs, improve margins and increase sales, allowing the business to return to profitability.

Leadership changes over the years included the arrival of a new chief financial officer at the end of 2024 and the return of chief executive Ben Lewis, who previously led the business for nearly a decade before stepping down in 2019.

In its latest filings on Companies House, the group said: “The business now turns its focus to getting back to profitable and sustainable growth, focusing on like-for-like sales growth at improved margins through a more efficient organisation.”