High street fashion retailer River Island has announced plans to close 33 stores by the end of January, including its Taunton location in Somerset, as part of a comprehensive restructuring strategy. This move follows a series of financial challenges and comes after the High Court approved the company’s restructuring plan in August.
Alongside these closures, River Island will implement rent reductions and write off debts for 71 additional stores. Of the over 200 stores nationwide, 122 will remain unaffected. The company currently employs approximately 5,500 staff members.
Ben Lewis, CEO of River Island, emphasized the company’s commitment to long-term sustainability, stating: “We have a clear transformation strategy to ensure the long-term viability of the business, and this decision gives us a strong platform to deliver this.” He highlighted recent improvements in product offerings and the shopping experience, noting that the restructuring will help align the store estate more closely with customer needs. Lewis also expressed gratitude to suppliers, landlords, and stakeholders for their support during this period of change.
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In June, Lewis acknowledged that although River Island is still a cherished British retailer, the rapid increase in online shopping has rendered much of its physical store portfolio misaligned with consumer demand. Additionally, rising operational costs have intensified financial pressures.
According to recent accounts, River Island reported a pre-tax loss of £33.2 million in 2023 after experiencing a 19% drop in sales. Losses are projected to nearly double to £64 million in 2024.