River Island to Close 33 Stores as Part of Rescue Plan

The British Brand River Island will shut 33 stores across the UK after winning High Court approval for a major restructuring plan. The move comes as the fashion retailer battles a £33.2 million loss in 2023 and a 19 percent drop in sales. The company’s leadership says the closures are necessary to safeguard its future and avoid falling into administration.

Court Approval and Restructuring Strategy

The company reported a £33.2 million loss in 2023 after a 19% drop in sales. Rising costs and the shift to online shopping made recovery harder. As a result, management sought a rescue plan to cut losses and restructure its store network.

On August 8, 2025, the High Court granted approval. The ruling allows River Island to close 33 stores, reduce rents at 71 locations, and write off certain debts. CEO Ben Lewis said the decision gives the company “a solid foundation” to implement a transformation strategy. He added that the goal is to align the store portfolio with customer needs and secure the brand’s long-term viability.

Financial Struggles and Changing Retail Landscape

River Island’s financial difficulties reflect broader challenges facing the UK high street. Rising costs, growing competition, and the rapid shift to online shopping have reduced foot traffic and sales in physical stores. The 19 percent sales decline in 2023 marked a significant blow for the brand, which had already been working to modernise its operations.

The closure of 33 stores will affect hundreds of jobs, though the company aims to keep the rest of its network intact. While some communities will lose their local branch, River Island hopes the streamlined approach will allow it to invest more in remaining locations and its online presence. The restructuring is designed to keep the retailer competitive and prevent it from following other high street names into insolvency.