High Street fashion chain River Island is set to shut 32 shops nationwide next month - and the closure dates of 15 have now been released. The struggling retailer has announced reduced rent payments on 71 outlets as part of a rescue plan designed to stave off administration.
The major shake-up will result in 32 of its more than 200 branches closing during the opening month of next year, whilst 71 locations will benefit from rent cuts and a considerable portion of debt will be eliminated. Nevertheless, River Island customers will retain access to 122 outlets, which will be unaffected by the overhaul.
The company has askedlandlords to lower rent for a three-year period and potentially halt payments on certain properties in a bid to reduce losses. A High Court Judge gave the green light to the proposal in August this year.
Speaking earlier this year, River Island chief executive Ben Lewis commented: "We have a clear transformation strategy to ensure the long-term viability of the business, and this decision gives us a strong platform to deliver this."
He added: "Recent improvements in our fashion offer and shopping experience are starting to show results, and the restructuring plan will enable us to align our store estate to our customers' needs. We are grateful to our suppliers, landlords and other stakeholders for their constructive engagement and shared confidence in River Island's future."
Matthew Weaver KC, speaking on behalf of River Island, informed the hearing that the company "simply has not been able to reverse" its financial woes. In his written statements, he attributed the drop in footfall and sales to "the pressures of a highly competitive and changing retail environment as well as the prevailing trend away from high street retail stores to online shopping".
He added: "A number of geopolitical events have also resulted in continuing supply chain disruption which, together with energy, labour and other price increases, has resulted in a cost base that's too high and unsustainable at its current level."
River Island, which boasts 223 outlets across the UK and Ireland, will not be closing any of its Irish branches, confirmed Mr Weaver. The firm, which employs approximately 5,500 staff, was established in 1948 under the Lewis and Chelsea Girl brand before undergoing a rebrand in the 1980s.
Some of the stores are anticipated to hold a clearance sale before they put up the shutters. However, no exact date for the beginning of sales has been confirmed yet.
Full list of River Island shops closing in January with 15 exact dates
