Latest news with #BenLewis
Daily Mail
2 hours ago
- Business
- Daily Mail
River island to close 33 stores in battle for survival
River Island is axing hundreds of jobs as it closes shops in a battle for survival. The fashion firm plans to shut 33 stores as shoppers abandon the High Street and head online. The announcement came as official figures showed retail sales fell 2.7 per cent in May – the biggest slump since 2023. Chief executive Ben Lewis also cited the increasing cost of doing business after Labour piled billions of pounds of extra taxes on retailers. The firm is asking landlords for rent reductions on a further 71 shops in order to make it worth keeping them open. The retailer trades from about 230 stores and employs 5,500 staff. Lewis said: 'River Island is a much-loved retailer, with a decades-long history on the High Street. However, 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.' The company made a £33.2m loss for the year to December 30 2023, the latest year it has published accounts for.
North Wales Chronicle
4 hours ago
- Business
- North Wales Chronicle
River Island to close 33 sites with hundreds of jobs at risk
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. A further 71 stores are also at risk, depending on talks with landlords in order to secure improved rental deals. 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. Iconic islander, Amelia, does linen tailoring 🤍#ImWearingRI Ben Lewis, chief executive of River Island, said: 'River Island is a much-loved retailer, with a decades-long history on the British high street. 'However, 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. '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, 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. Recommended reading: '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.
Yahoo
6 hours ago
- Business
- Yahoo
Norfolk stores at risk as national chain plans shop closures
River Island stores in Norfolk could be at risk of closure after the chain unveiled a radical restructuring plan. The clothing retailer is proposing to close 33 of its 230 shops by January next year. Bosses blamed the closures on the 'migration of shoppers from the high street to online' and higher costs to run stores. A further 71 stores are also at risk, depending on talks with landlords in order to secure improved rental deals. River Island currently has shops in Great Yarmouth, King's Lynn and Norwich. Ben Lewis, chief executive of River Island, said: 'River Island is a much-loved retailer, with a decades-long history on the British high street. READ MORE: 'However, 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. 'We have a clear strategy to transform the business to ensure its long-term viability." River Island, 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.
South Wales Guardian
7 hours ago
- Business
- South Wales Guardian
River Island to close 33 sites with hundreds of jobs at risk
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. A further 71 stores are also at risk, depending on talks with landlords in order to secure improved rental deals. 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. Iconic islander, Amelia, does linen tailoring 🤍#ImWearingRI Ben Lewis, chief executive of River Island, said: 'River Island is a much-loved retailer, with a decades-long history on the British high street. 'However, 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. '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, 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. Recommended reading: '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.
The Guardian
7 hours ago
- Business
- The Guardian
River Island plans to close 33 stores, putting hundreds of jobs at risk
River Island plans to close 33 of its 230 stores – with a further 71 at risk - under a restructuring programme that could put more than 1,000 jobs on the line. The family-owned company, which employs about 5,500 people, blamed a 'migration of shoppers from the high street to online' and higher costs for the need to make the drastic changes to stem heavy losses. The plan, which is being put together with help from the advisory firm PricewaterhouseCoopers and is to be voted on by creditors in August, involves the closure of 33 stores with the future of a further 71 dependent on talks with landlords to improve rental deals. Ben Lewis, the chief executive of River Island, said the company regretted any job losses and would 'try to keep these to a minimum'. He added: 'River Island is a much-loved retailer, with a decades-long history on the British high street. However, 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. River Island swung to a £33.2m loss in 2023, according to the latest accounts filed at Companies House, after sales fell by more than 19% to £578.1m. It made profits of just £2m in 2022. In January, the group launched a cost-cutting effort including a redundancy programme at its London head office, affecting departments such as buying and merchandising. River Island was formerly known as Chelsea Girl – and began selling clothing under the name Lewis's in the 1940s. Its troubles have emerged as the budget chain Poundland launched a similar restructuring programme, with the eventual aim of shutting up to 150 stores, two distribution centres and ending online sales, putting 2,000 jobs at risk. On Friday, the British luxury goods maker Mulberry announced plans to raise £20m to fund a turnaround plan as it admitted it would make a loss of £23m in the year to 29 March, a similar loss to the previous 12 months. Sales are expected to fall to £120m, down from £153m. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Retailers across the high street are coming under pressure from the rising cost of wages and taxes, including national insurance and business rates, while consumer spending remains weak amid concerns about geopolitical events and inflation on basics such as food and energy. The rapid rise of cheap online sellers such as Shein, Temu and Amazon has also put high street retailers under pressure as visitor numbers to physical stores remain subdued. Matthew Padian, an insolvency expert at law firm Stevens & Bolton, said he expected more retailers would turn to restructuring plans to reduce their stores estates as the new system, introduced during the pandemic, became better understood. 'There will be more coming down the track as it doesn't look like it is getting any easier for retailers,' he said.
