High street giant with 220 UK shops to close 18 more before the end of January | UK | News
In another major blow to Britain’s high street, major retailer River Island will close a further 18 stores by the end of this month. As part of a major restructuring, the chain had already closed nine stores on January 18, and another six will close permanently this weekend (yesterday, Saturday, January 24) and another on Monday. This will be followed by 12 more closures on January 31.
As with many high street chains, the closures are being attributed to changing customer habits and high operating costs. Ben Lewis, River Island’s chief executive, said the fashion brand was “much loved” in the UK but its “extensive portfolio of stores no longer suits the needs of our customers”. Last year was a tough one for the retailer. In August, River Island narrowly escaped administration by securing a restructuring plan that would address pre-tax losses of £124.3 million and serious cash shortages.
The plan involved closing 33 stores in the UK, reducing rents at 71 locations, and aims to improve profitability by 2028, with the help of £40 million of funding.
The company faces a cash shortfall of £43 million by September 2025 due to high energy costs, inflation and intense competition from fast fashion rivals such as Shein. Going forward, the retailer is focusing on a smaller, more profitable store footprint and a larger online presence to tackle declining high street traffic.
Mr Lewis said: “We have a clear transformation strategy to ensure the long-term sustainability of the business and this decision provides us with a strong platform to deliver this. “Recent developments in our fashion offer and shopping experience are beginning to show results and the restructuring plan will enable us to align our store space to the needs of our customers.
“We are grateful to our suppliers, landlords and other stakeholders for their constructive engagement and shared confidence in the future of River Island.”
When the closures were first announced last year, it was reported that around 110 of around 950 roles at River Island’s head office had been made redundant, saving an estimated £8.1 million. Several River Island locations have already closed. Brighton, Edinburgh, Great Yarmouth and Stockton-on-Tees closed their doors at the end of last year.
