River Island set to close 33 shops

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.

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 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.

River Island made a £33.2m loss in 2023 after sales fell 19%, according to its most recent set of accounts.

The retailer will close:

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.

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 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.

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.