River Island: UK fashion chain plans restructure with 230 stores and jobs at risk, which locations could close

• River Island is preparing a major restructuring plan amid falling sales and rising losses
• PwC has been hired to oversee the rescue effort, replacing earlier cost-cutting advisers
• The chain reported a £33.2m pre-tax loss in 2023, with turnover down over 19%
• Around 230 stores and 5,500 jobs could be at risk, though no final decisions have been made
• Stores in Telford, Gloucester, Cheltenham, and up to 20 in Scotland have been flagged as vulnerable

Thousands of jobs and more than 200 UK stores could hang in the balance as one of Britain’s most recognisable high street fashion chains prepares for a sweeping restructuring.

Sky News has reported that the founding family behind River Island has called in PricewaterhouseCoopers (PwC) to craft a radical turnaround plan, aimed at averting financial collapse.

While no final decisions have been made, sources say a formal proposal could emerge within weeks, with significant implications for staff and landlords.

The business - founded in 1948 as Lewis and later known as Chelsea Girl - has suffered a sharp drop in revenue. In the year to 30 December 2023, River Island reported a £33.2m pre-tax loss, with turnover plunging more than 19% to £578.1m.

The proposed rescue deal is expected to utilise a court-sanctioned restructuring mechanism, allowing the chain to renegotiate with creditors such as landlords - an increasingly common strategy among troubled UK retailers.

PwC’s appointment marks a shift in strategy, replacing earlier work on cost-cutting and profit improvement led by consultancy AlixPartners.

Which River Island stores could close?

River Island currently operates around 230 stores nationwide and employs approximately 5,500 people, though insiders say it is too early to confirm how many roles or locations might be affected under any formal plan.

Retailers have also been rattled by recent government tax reforms, with the likes of Lakeland and The Original Factory Shop already pursuing new ownership, while Poundland is currently in the final stages of an auction process.

It’s been reported locally that the Telford Shopping Centre branch of River Island is “among those at risk” as part of the radical rescue. Stores in Gloucester and Cheltenham have also been flagged as locations that could be affected.

Sources note around that 20 River Island outlets across Scotland could also be on the chopping block — though which exact stores remain unspecified.

We’ll update this article as and when more details are confirmed and made available.

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