High street fashion retailer River Island has revealed plans to close 33 stores by the end of January, including the store located in Taunton, Somerset. This move forms part of a comprehensive restructuring strategy aimed at reversing the company’s recent financial challenges.
The announcement follows approval of the restructuring plan by the High Court in August, a response to significant losses suffered by the retailer. Alongside store closures, River Island will also negotiate rent reductions and write off debt for 71 additional stores to ensure greater financial sustainability.
Currently, River Island operates over 200 stores across the UK. With 33 closing and 71 receiving rent adjustments, 122 stores will remain unaffected. The retailer employs approximately 5,500 staff members nationwide.
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Ben Lewis, CEO of River Island, emphasized the company’s commitment to long-term viability: “We have a clear transformation strategy that provides a strong foundation for the future of our business. The recent upgrades to our fashion offerings and shopping experience are beginning to produce positive results. This restructuring allows us to better align our store network with what our customers want.”
Lewis acknowledged the broader retail challenges facing River Island, stating that while the brand remains a “much-loved” British retailer, the rise of online shopping has left the company with “a large portfolio of stores no longer aligned to our customers’ needs.” Increased operational costs over recent years have further intensified financial pressures.
The company reported a pre-tax loss of £33.2 million in 2023 following a 19% drop in sales, with losses expected to nearly double to £64 million in 2024, according to recent financial accounts.
This major restructuring marks a significant shift in River Island’s approach, aiming to streamline its operations and adapt to evolving consumer behaviors in the competitive fashion retail sector.