River Island to close 33 shops

Tom EspinerBusiness reporter, BBC NewsGetty ImagesRiver Island plans to shut 33 outlets within the UK in a transfer which places tons of of jobs in danger.The clothes retailer stated extra individuals buying on-line and better prices to run shops have been behind its proposals to collectors.It additionally needs its landlords to chop rents at an additional 71 shops that are in danger.The family-owned retailer presently has 230 outlets and employs about 5,500 individuals, however has suffered heavy monetary losses.Ben Lewis, chief govt of River Island, stated that though River Island is “a much-loved” British excessive avenue retailer, extra on-line buying means it has “a big portfolio of shops that’s now not aligned to our prospects’ wants”.He added {that a} “sharp rise in the price of doing enterprise over the previous couple of years has solely added to the monetary burden”.He stated a turnaround plan was in place, however restructuring was additionally essential.”We remorse any job losses on account of retailer closures, and we are going to attempt to maintain these to a minimal,” he added.River Island made a £33.2m loss in 2023 after gross sales fell 19%, based on its most up-to-date set of accounts.It declined to say which shops it’s planning to shut.The chain stated it intends to seek the advice of staff over the doable job losses, and can redeploy employees the place doable.No head workplace employees will probably be straight affected by the proposed closures, an organization supply stated.Collectors will begin to vote on the plan on 4 August, and a court docket will resolve whether or not to approve the plan on 7 August.River Island was based in 1948 beneath the Lewis and Chelsea Woman model earlier than being renamed within the Eighties.Susannah Streeter, head of cash and markets for Hargreaves Lansdown, stated it was “probably not shocking” that River Island had proposed closing shops, given the pressures it’s beneath.She stated latest adjustments to employer Nationwide Insurance coverage contributions meant prices had risen for retailers like River Island with a lot of bodily shops.There may be intense competitors in style retail, not solely from the likes of Boohoo, but additionally from relative on-line newcomers equivalent to Chinese language giants Shein and Temu.These “less expensive retailers with their finger on the heart beat of style” are making issues actually robust within the sector, she stated.Retail gross sales and client confidence usually have been down as households reduce to attempt to cope with inflation, she stated, which all provides as much as a tough state of affairs for River Island and its staff.