River Island is set to shut 33 of its 230 stores as part of a major restructuring plan that could put over 1,000 jobs at risk, with a further 71 shops under review pending talks with landlords.

The fashion retailer has blamed the shift to online shopping and rising operational costs for the move, which is being overseen by restructuring advisers PwC and will be put to creditors for a vote on 4 August, with a court decision to follow on 7 August.

Chief executive officer Ben Lewis said the business would "try to keep job losses to a minimum", but admitted River Island's store portfolio was "no longer aligned to our customers' needs".

"River Island is a much-loved retailer, with a decades-long history on the British high street," Lewis said. "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 family-owned retailer currently employs around 5,500 people and operates stores across the UK and Ireland. In 2023, the retailer swung to a pre-tax loss of £33.2m after turnover dropped 19 per cent to £578.1m, compared with a £2m profit the year prior.

The company declined to say which stores it is planning to close but confirmed it intends to consult employees over the possible job losses and will redeploy staff where possible. No head office staff will be directly affected by the proposed closures, according to a company source.

Back in January, River Island had launched a redundancy programme at its London head office, impacting roles across buying, merchandising and HR.

Its restructuring plan mirrors moves by other embattled retailers, including Poundland, which is eyeing the closure of up to 150 stores, alongside two distribution centres and the end of its ecommerce operation.

River Island was founded in 1948 under the Lewis and Chelsea Girl brand before being renamed in the 1980s.

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