River Island to shut 33 stores as closures put hundreds of jobs at risk | UK | News
River Island is planning to shut as many as 33 stores, with hundreds of jobs at risk according to reports, as the UK’s high street woes continue. A further 70 stores may also be at risk, depending on whether the British high street chain can reach agreements with landlords to reduce rent payments, reports Sky News.
The company, which is understood to employ about 5,500 people, is reportedly conducting a restructuring, which would involve it being put to creditors in August. In a statement issued on Friday, Ben Lewis, River Island’s chief executive, said: “River Island is a much-loved retailer, with a decades-long history on the British high street.”
It continued: “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.”
The closures, reported by Sky News, come less than a month after it revealed the clothing brand was working with PricewaterhouseCoopers (PwC) on a restructuring plan.
Accounts for River Island Clothing Co, for the 52 weeks ending 30 December 2023, show the company made a pre-tax loss of £33.2 million. Turnover during the year fell by more than 19% to £578.1 million.
The Express has contacted River Island for comment.
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