River Island has received approval from the High Court to proceed with the closure of 33 stores across the UK as part of a critical restructuring plan aimed at stabilizing the retailer’s finances. The company has been through the wringer over the past year. It posted a £33.2 million loss in its latest accounts, largely as a result of a 19% drop in turnover.
The closures start in January 2026. Millions of residents in cities such as Aylesbury, Brighton, and Barnstaple will see their lives improved among many other communities nationwide. Today, River Island has 223 stores across the UK and Ireland. This year, the company has shuttered seven money-losing locations. Most are making it clear that they need to make urgent moves to stem bloodletting and focus their operations.
Ben Lewis, River Island’s chief executive, emphasized the importance of this restructuring in aligning the company’s store estate with customer needs. He stated, “This decision gives us a strong platform to deliver this,” highlighting the future-focused approach of the company amid challenging market conditions.
Struggling fashion chain River Island is currently accelerating store closures and seeking to agree lower rents on a further 71 stores. At times, they even set the rent to zero. This strategy, among others, is intended to lessen financial burdens as the company tries to chart a course through stormy retail seas.
Matthew Weaver KC, representing River Island, underscored the rarity of companies successfully shrinking their way to profitability, stating, “There are very few examples of companies shrinking into greatness.” This recognition is indicative of the muddled futures clarity for River Island.
The recent restructuring comes less than a month after creditors were warned of possible cash crisis at River Island. Unless ontrack plan’s turnaround proposals are adopted, the company may face financial bankruptcy by late August. The restructuring process will cut about 110 jobs at the main office. This change alone is estimated to save about £8.1 million.
Despite these difficulties, River Island is confidently predicting annual turnover growth of just 1% a year for the next five years. This may be a sign of cautious optimism about its future performance. Lewis reiterated that the company’s transformation strategy is pivotal for ensuring River Island’s sustainability and relevance in an evolving retail market.
None of River Island’s stores in Ireland will face closures as part of this restructuring effort, allowing the company to maintain its presence in that region.