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River Island names 33 shops it wants to close | |
(6 days later) | |
River Island has named the 33 shops it plans to close in the UK as part of a plan that puts hundreds of jobs at risk. | |
The clothing retailer said last week that 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 last week that although River Island is "a much-loved" British 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. |
Proposed closures | |
The retailer will close: | |
Aylesbury | |
Bangor Bloomfield | |
Barnstaple | |
Beckton | |
Brighton | |
Burton-Upon-Trent | |
Cumbernauld | |
Didcot | |
Edinburgh Princes Street | |
Falkirk | |
Gloucester | |
Great Yarmouth | |
Grimsby | |
Hanley | |
Hartlepool | |
Hereford | |
Kilmarnock | |
Kirkcaldy | |
Leeds Birstall Park | |
Lisburn | |
Northwich | |
Norwich | |
Oxford | |
Perth | |
Poole | |
Rochdale | |
St Helens | |
Stockton On Tees | |
Surrey Quays | |
Sutton Coldfield | |
Taunton | |
Workington | |
Wrexham | |
The chain said it will consult employees over possible job losses and will redeploy staff where possible. | |
No head office workers will be directly affected by the proposed closures, a 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. | 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 Chinese giants such as 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. | 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. | 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. |