Fri, 25 Jul 2025

Fri, 25 Jul 2025 River Island plans to close 33 shops - why is it in trouble?

The future of the chain is in the balance ahead of a crucial court ruling on its restructuring plans.
River Island's future hangs in the balance as it prepares for a High Court ruling on its restructuring plans. The company, which has struggled with heavy financial losses, intends to close 33 UK stores and reduce rents at another 71 locations. Industry experts suggest that River Island's challenges are not unique, but rather reflective of broader issues facing the retail industry. Catherine Shuttleworth from Savvy Marketing attributes River Island's struggles to several factors, including expensive store portfolios, rising costs, and declining foot traffic. The company's recent financial losses have been exacerbated by intense competition in the fashion retail market, with brands such as Boohoo and Chinese giants like Shein and Temu gaining significant traction. River Island's plans to restructure include cutting costs, reducing debt, and improving its e-commerce platform. However, some industry experts are skeptical about the company's ability to recover without making significant changes. Ben Lewis, chief executive of River Island, has acknowledged that the "cost of doing business" has increased significantly over the past few years. If the restructuring plan is rejected by the High Court, River Island may need to revise its strategy and potentially seek additional funding or support from investors. The company's fate will depend on its ability to rebrand itself and appeal to loyal customers who have been losing interest in the brand. Additional challenges facing River Island include rising costs, increasing competition, and a decline in foot traffic at its stores. Industry experts suggest that the company may need more time to turn its fortunes around and make significant changes to remain competitive.
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