This article is from the source 'bbc' and was first published or seen on . The next check for changes will be

You can find the current article at its original source at https://www.bbc.com/news/articles/cr4wlw0w31ko

The article has changed 3 times. There is an RSS feed of changes available.

Version 1 Version 2
River Island to close 33 shops River Island to close 33 shops
(about 1 hour later)
River Island plans to close 33 shops in the UK in a move which puts hundreds of jobs at risk.River Island plans to close 33 shops in the UK in a move which puts hundreds of jobs at risk.
The clothing retailer said more people shopping online and higher costs to run stores were behind its proposals to creditors.The clothing retailer said more people shopping online and higher costs to run stores were behind its proposals to creditors.
It also wants its landlords to cut rents at a further 71 stores which are at risk.It also wants its landlords to cut rents at a further 71 stores which are at risk.
The family-owned retailer currently has 230 shops and employs about 5,500 people, but has suffered heavy financial losses.The family-owned retailer currently has 230 shops and employs about 5,500 people, but has suffered heavy financial losses.
Ben Lewis, chief executive of River Island, said that although River Island is "a much-loved" British high street retailer, more online shopping means it has "a large portfolio of stores that is no longer aligned to our customers' needs".Ben Lewis, chief executive of River Island, said that although River Island is "a much-loved" British high street retailer, more online shopping means it has "a large portfolio of stores that is no longer aligned to our customers' needs".
He added that a "sharp rise in the cost of doing business over the last few years has only added to the financial burden".He added that a "sharp rise in the cost of doing business over the last few years has only added to the financial burden".
He said a turnaround plan was in place, but restructuring was also necessary.He said a turnaround plan was in place, but restructuring was also necessary.
"We regret any job losses as a result of store closures, and we will try to keep these to a minimum," he added."We regret any job losses as a result of store closures, and we will try to keep these to a minimum," he added.
River Island made a £33.2m loss in 2023 after sales fell 19%, according to its most recent set of accounts.River Island made a £33.2m loss in 2023 after sales fell 19%, according to its most recent set of accounts.
It declined to say which stores it is planning to close.It declined to say which stores it is planning to close.
The chain said it intends to consult employees over the possible job losses, and will redeploy staff where possible.The chain said it intends to consult employees over the possible job losses, and will redeploy staff where possible.
No head office staff will be directly affected by the proposed closures, a company source said.No head office staff will be directly affected by the proposed closures, a company source said.
Creditors will start to vote on the plan on 4 August, and a court will decide whether to approve the plan on 7 August.Creditors will start to vote on the plan on 4 August, and a court will decide whether to approve the plan on 7 August.
River Island was founded in 1948 under the Lewis and Chelsea Girl brand before being renamed in the 1980s.River Island was founded in 1948 under the Lewis and Chelsea Girl brand before being renamed in the 1980s.
Susannah Streeter, head of money and markets for Hargreaves Lansdown, said it was "not really surprising" that River Island had proposed closing stores, given the pressures it is under.
She said recent changes to employer National Insurance contributions meant costs had risen for retailers like River Island with a large number of physical stores.
There is intense competition in fashion retail, not only from the likes of Boohoo, but also from relative online newcomers such as Chinese giants Shein and Temu.
These "much cheaper retailers with their finger on the pulse of fashion" are making things really tough in the sector, she said.
Retail sales and consumer confidence in general have been down as households cut back to try to deal with inflation, she said, which all adds up to a difficult situation for River Island and its employees.