A major fashion retailer is set to close a further 12 stores next week as part of a major restructuring plan. In August, River Island confirmed plans to pull down the shutters on 33 stores in a bid to avoid collapsing into administration.
The High Court-approved move came after the retailer revealed last year that it has seen a £32.3million pre-tax loss a 19%-drop in sales. River Island blamed the downturn on rising costs and customers increasingly migrating towards online shopping. The plan also involves rent reductions and debt being written off for 71 stores.
It also reportedly axed 110 of the approximately 950 roles at its head office, a move that is estimated to have saved the chain £8.1million.
The chain currently some 220 stores across the UK, with about 5,500 employees. 120 of its stores are unaffected by the turnaround plans.
Some of the branches in the wave of 33 have already closed, including six today (Saturday, January 24). These include:
A dozen more stores will be leaving the high street next Saturday (January 31), the last of the restructure-related closures announced thus far. Among them are:
In a statement put out last year, ahead of the overhaul plan being put before creditors, River Island CEO Ben Lewis said the "well-documented migration of shoppers from the high street to online has left the business with a large portfolio of stores that is no longer aligned to our customers' needs".
"The sharp rise in the cost of doing business over the last few years has only added to the financial burden," he continued. "We have a clear strategy to transform the business to ensure its long-term viability.
"Recent improvements in our fashion offer and in-store shopping experience are already showing very positive results," Mr Lewis said at the time, "but it is only with a restructuring plan that we will be able to see this strategy through and secure River Island's future as a profitable retail business".
"We regret any job losses as a result of store closures, and we will try to keep these to a minimum."
