Four south Essex stores at risk as River Island bosses announced restructuring
FOUR popular clothing stores in south Essex could be at risk as River Island has announced closures as part of a radical restructuring plan.
The fashion retailer has unveiled a radical restructuring plan in a bid to reverse recent heavy losses due to a slump in trading.
Bosses blamed the closures on the 'migration of shoppers from the high street to online' and higher costs to run stores.
The family-owned retailer confirmed it is proposing to close 33 of its 230 stores by January next year as a result.
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A further 71 stores are also at risk, depending on talks with landlords in order to secure improved rental deals.
There are four River Island stores in south Essex, with two in Basildon, one at Lakeside Shopping Centre and one in Southend.
The list of stores set to close next year is yet to be announced.
The retailer, which employs around 5,500 people, was founded in 1948 under the Lewis and Chelsea Girl brand before being renamed in the 1980s.
It has reportedly hired advisers from PwC in order to oversee the restructuring process.
The proposals are set to go to a vote by the firm's creditors – companies or individuals owed money by the retailer – in August.
The deal will result in fresh funding being invested in the business to help fuel its turnaround.
'We regret any job losses as a result of store closures, and we will try to keep these to a minimum.'
The retailer is among high street fashion chains to have been impacted by weaker consumer spending and competition from cheaper online rivals, such as Shein.
River Island fell to a £33.2 million loss in 2023 after sales slid by 19%, according to its most recent set of accounts.
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