River Island plans to close 33 stores, putting hundreds of jobs at risk | Retail industry

River Island plans to close 33 of 230 stores and is at risk under a restructuring program that can put more jobs.

The family company, which employs approximately 5,500 people, blamed the migration of shoppers from the high street online ”and higher costs for the need to make harsh changes in heavy losses.

The plan, which was brought together with the help of the consulting firm PricewaterhouseCoopers and will be voted by the creditors in August, includes the closure of 33 stores on 71 talks with the landlords to improve the rental agreements.

River Island’s General Manager Ben Lewis said that the company regretted the loss of business and will “try to keep them on a minimum.”

“River Island is a very popular retailer in the British Hight Street.

River Island, according to the latest accounts opened at Companies House, fell more than 19% after sale. In 2022, he made a profit of £ 2 million.

In January, the Group launched an effort to reduce a cost, including a surplus program that influenced departments such as purchasing and merchandising at the London head office.

River Island was previously known as Chelsea Girl, and in the 1940s he began to sell clothes under the name of Lewis.

The budget chain Poundland budget chain emerged when a similar restructuring program started, and ultimately 150 stores, two distribution centers and online sales ended and 2,000 jobs at risk.

On Friday, British luxury goods manufacturer Mulberry announced his plans to collect £ 20 million to finance a return plan, because he admitted that he would damage £ 23 million until March 29 and suffered a loss similar to the last 12 months. Sales are expected to fall from £ 153 million.

While retailers in Hight Street, including national insurance and job rates, are under pressure from increasing costs and taxes, consumer expenditures continue to be weak due to concerns about inflation on foundations such as geopolitical events and food and energy.

The rapid rise of cheap online sellers such as Shein, Temu and Amazon put high street retailers under the suppression of visitors to physical stores.

Matthew Padian, a bankruptcy expert in Law Office Stevens & Bolton, said more retailers expecting to resort to restructuring plans to reduce store property as the new system introduced during the pandemi is better understood.

“It doesn’t seem easier for retailers, it will be more than the track,” he said.