Latest news with #retailrestructuring
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.
Daily Mail
8 hours ago
- Business
- Daily Mail
High street fashion chain plans to shut 33 stores
High street chain River Island is planning to shut 33 stores, with 71 more at risk, putting thousands of jobs on the line The chain plans to close 33 of its UK stores, putting hundreds of jobs at risk as part of a major restructuring plan, according to reports. The family-owned retailer is aiming to reverse a recent slump in trading with radical measures, including store closures and re-negotiations on rent. Sky News reports that a further 71 stores face potential closure depending on talks with landlords to secure better rental terms. River Island, which employs around 5,500 people, was founded in 1948 under the Lewis and Chelsea Girl brand before rebranding in the 1980s. It is now headed up by CEO Ben Lewis, the nephew of its founder, who took over his second stint as the head of the family firm in February. He previously held the position for almost a decade before stepping down in 2019. To manage the turnaround, the retailer has brought in advisers from PwC to oversee the restructuring process. The proposals will be put to a vote by creditors, those owed money by River Island, in August, with fresh funding expected to support the business's recovery if approved. The high street giant is among several fashion chains hit hard by weaker consumer spending and fierce competition from cheaper online rivals like Shein. In its latest accounts, River Island reported a £33.2 million loss for 2023, with sales down 19%, highlighting the challenging trading environment. River Island has been contacted for comment. In January, the firm introduced a redundancy programme at its London head office in a bid to save money in the context of increasingly pressured finances. The job cuts affected a range of employees across buying, merchandising and HR, but the total number of losses was not confirmed by the retailer. Company accounts showed the company was £33.2 million in the red for the 12 months to December 30, 2023.
Daily Mail
9 hours ago
- Business
- Daily Mail
Massive high street fashion chain plans to shut 33 stores with 71 more at risk - with thousands of jobs on the line
High street chain River Island is planning to shut 33 stores, with 71 more at risk, putting thousands of jobs on the line The chain plans to close 33 of its UK stores, putting hundreds of jobs at risk as part of a major restructuring plan, according to reports. The family-owned retailer is aiming to reverse a recent slump in trading with radical measures, including store closures and re-negotiations on rent. Sky News reports that a further 71 stores face potential closure depending on talks with landlords to secure better rental terms. River Island, which employs around 5,500 people, was founded in 1948 under the Lewis and Chelsea Girl brand before rebranding in the 1980s. It is now headed up by CEO Ben Lewis, the nephew of its founder, who took over his second stint as the head of the family firm in February. He previously held the position for almost a decade before stepping down in 2019. To manage the turnaround, the retailer has brought in advisers from PwC to oversee the restructuring process. The proposals will be put to a vote by creditors, those owed money by River Island, in August, with fresh funding expected to support the business's recovery if approved. The high street giant is among several fashion chains hit hard by weaker consumer spending and fierce competition from cheaper online rivals like Shein. In its latest accounts, River Island reported a £33.2 million loss for 2023, with sales down 19%, highlighting the challenging trading environment. River Island has been contacted for comment. In January, the firm introduced a redundancy programme at its London head office in a bid to save money in the context of increasingly pressured finances. The job cuts affected a range of employees across buying, merchandising and HR, but the total number of losses was not confirmed by the retailer. Company accounts showed the company was £33.2 million in the red for the 12 months to December 30, 2023. It also suffered a 15 percent decline in sales and a 19 percent fall in turnover. The year before, River Island had a total profit of £7.5 million.
Yahoo
10 hours ago
- Business
- Yahoo
Hundreds of jobs at risk as River Island plans store closures
Hundreds of jobs are at risk at River Island as part of plans to shut 33 of its UK stores. The 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 into the business in order to help fuel its turnaround. 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. '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 Independent
10 hours ago
- Business
- The Independent
Hundreds of jobs at risk as River Island plans store closures
Hundreds of jobs are at risk at River Island as part of plans to shut 33 of its UK stores. The 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 into the business in order to help fuel its turnaround. 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. '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.
