The retailer is planning to shut 33 of its 230 outlets in a proper restructuring plan.
An extra 71 shops are additionally in danger because the retailer proposes to cut back hire funds. It’s re-negotiating the lease phrases with the landlords of those websites.
The restructuring plan can be put to collectors in August and must be sanctioned by the Excessive Court docket. If authorised, River Island will obtain new funding to assist its turnaround plan.
The 33 shops are attributable to shut in January 2026, which is able to result in job losses, however the enterprise plans to minimise the variety of redundancies by doubtlessly redeploying some employees.
It comes after the retailer introduced in advisors at PwC earlier this month because the excessive road style chain battles robust buying and selling situations and falling gross sales.
In its newest accounts, River Island reported a pre-tax lack of £32.3m within the yr to 30 December 2023, in contrast with a revenue of £7.5m in 2022, as gross sales fell 15% to £701.5m.
Ben Lewis, CEO of River Island, stated: “River Island is a much-loved retailer, with a decades-long historical past on the British excessive road. Nevertheless the well-documented migration of buyers from the excessive road to on-line has left the enterprise with a big portfolio of shops that’s not aligned to our clients’ wants. The sharp rise in the price of doing enterprise over the previous few years has solely added to the monetary burden.
“We now have a transparent technique to remodel the enterprise to make sure its long-term viability. Current enhancements in our style supply and in-store procuring expertise are already displaying very optimistic outcomes, however it’s only with a restructuring plan that we will see this technique by means of and safe River Island’s future as a worthwhile retail enterprise. We remorse any job losses on account of retailer closures, and we are going to attempt to hold these to a minimal.”
