River Island will initially close 33 stores, with a further 70 at risk, following a major restructuring plan.
Over 1,000 jobs are at risk at the fashion brand, which currently employees 5,500 people. At the start of June, River Island called in PwC to create a formal restructuring plan as losses hit £33.2mn.
Earlier this year, River Island launched a redundancy programme at its London head office, impacting roles across buying, merchandising and HR.
In a statement, Ben Lewis, chief executive of River Island stressed that the retailer would “try to keep [job losses] to a minimum”.
He said that “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.”
The fashion brand, founded in 1948 by Bernard Lewis and his brothers, has avoided the move to pureplay that followed the demise of one-time rivals including Topshop, Dorothy Perkins and Burtons. It continues to be family owned through the Lewis Trust Group.
River Island had warned of a multitude of financial and operational risks to its business in this posting, it stated: “The market for retailing of fashion clothing is fast changing with customer preferences for more diverse, convenient and speedier shopping journeys and with increasing competition especially in the digital space.”
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