River Island has confirmed plans to close 33 additional stores, including its Birmingham branch, in the coming weeks as part of a wider restructuring effort. This move follows previous closures at locations such as Brighton and Great Yarmouth.
The business first revealed its restructuring proposals in June, which received High Court approval in August. Beyond store closures, the plan includes rent reductions for 71 stores and debt write-offs aimed at stabilizing the company’s financial position.
Matthew Weaver KC, representing River Island in court, highlighted that the company has struggled to counteract ongoing financial challenges. He attributed the decline in foot traffic and sales to the growing competitive pressures within the retail sector and a significant shift in consumer behavior from brick-and-mortar shops to online shopping.
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Ben Lewis, River Island’s CEO, emphasized the brand’s rich history on the British high street while acknowledging the challenges posed by the rising costs of doing business and changing shopping habits. He stated, “While we have improved our fashion offerings and in-store experience with positive early results, this restructuring is essential to transform River Island and secure its future profitability.”
Lewis also expressed regret over the inevitable job losses due to the closures but reaffirmed the company’s commitment to minimizing the impact on employees.