One of the UK’s most well-known high street brands, River Island, is reportedly facing a serious risk of collapse, as company leaders scramble to put together an emergency rescue plan.
The fashion chain, which operates more than 250 stores across the UK, is working with consultants to devise a strategy aimed at keeping the business afloat during what has been described as a particularly tough period for retail.
According to Sky News, the retailer has brought in advisors from PricewaterhouseCoopers (PwC) to develop a plan, which is expected to be finalized within the next few weeks. The restructuring could lead to store closures and affect some of the 5,500 staff currently employed by the brand.
A longstanding British brand under pressure
River Island has been a staple of British fashion for over 75 years, originally trading under the names Lewis and Chelsea Girl before adopting the River Island name in 1988.
In its most recent financial filing with Companies House, the company reported a £33.2 million pre-tax loss, a dramatic swing from the £2 million profit recorded the previous year. Revenue also dropped sharply by 19%, falling to £578.1 million from £715.3 million.
The company attributed the downturn to several factors, including:
Falling sales
Rising operational costs, including wages
The cost of clearing surplus stock
A changing retail Llndscape
In a statement, the company acknowledged the significant challenges facing fashion retailers, noting that consumer preferences are shifting rapidly toward more convenient and diverse shopping experiences, particularly online.
They cited a “highly competitive and rapidly changing retail environment” as a core risk, along with economic uncertainty, rising inflation, and global supply chain disruptions—all of which have weakened consumer spending power and dented consumer confidence.
Back in January, River Island reportedly hired AlixPartners to help identify ways to cut costs and improve profitability.
Broader high street challenges
If River Island were to shut down stores, it would add to the mounting crisis on the UK high street, which has seen numerous closures in recent years.
Just last month, 78 bank branches from major providers—NatWest, Lloyds, Halifax, and Santander—announced closures, further reducing access to in-person services for many customers.
River Island has yet to issue an official public comment on the current situation. Photo by Dorsetdude, Wikimedia commons.