Brits have seen the UK high street decline rapidly over the past few years, with many big names closing down stores across the country. The major blow to the industry has impacted banks, supermarkets, and fashion brands, including British retailer River Island. The clothing store that has 230 branches and employs around 5,500 people has experienced heavy financial losses, and as a result plans to close 33 stores.
It said that more people are shopping online rather than stores and the increased cost of running stores led to its proposals to creditors. Additionally, River Island wants its landlords to cut rents at a further 71 branches. Ben Lewis, chief executive of River Island, said that although the brand 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".
According to River Island's most recent set of accounts, the retailer saw sales fall by 19% in 2023, resulting to a loss of £33.2 million.
The River Island boss said a turnaround plan is in place, but restructuring was also needed, reports BBC. He said the retailer regrets any job losses that will come as a result of the store closures, but will be attempted to be kept "to a minimum".
Employees will be consulted over any possible job losses and staff members will be redeployed where possible. No head office employees will be directly affected by the closures, a source said.
Creditors will begin to vote on the plan August 4, and a court will decide whether to approve the plan three days later on August 7.
Susannah Streeter, head of money and markets for Hargreaves Lansdown, said that the proposed closures are "not really surprising" and with competition from cheaper online retailers, it has made things harder for the sector.
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