The Brighton branch of River Island is one of 33 stores that the chain is shutting in an effort to avoid going bust.
A High Court judge approved the high street fashion chain’s restructuring plan today (Friday 8 August) amid fears that the company could collapse into administration without the overhaul.
Lawyers for River Island told the court that the company “simply has not been able to reverse” a trend of financial difficulty.
No date has been given yet for the closure of the store in Churchill Square Shopping Centre, in Brighton, or for the number of jobs that will be lost there.
The company has about 5,500 staff overall and is expected to shed 110 jobs at its head office in west London where about 950 people work.
The business was founded in 1948 and was known as Lewis Separates in the early days before rebranding as Chelsea Girl in the 1960s.
It was renamed again in 1988, this time as River Island, and enjoyed steady growth but, in recent years, the retailer has had declining sales, the court was told.
The most recent accounts recorded a full-year loss of £33.2 million after sales fell by almost a fifth.
Forecasts suggest that River Island may be unable to pay its debts from later this month or early next month without significant changes.
The court was told that the projected shortfall totalled more than £43 million while the company was trying to obtain funding of £54 million.
Very sad for the staff
Sounds like the continuation of “the death of the high street.”
BHCC are responsible to a large extent, with ridiculous parking charges and deliberate road changes to create gridlock
River island is in Churchill Square where parking charges are set by the private companies which manage the parking.
Brighton is not and never has been in ‘gridlock’.
I quite like River Island and have bought a few things there. Transport mode? Walking and by bike.
The research is pretty clear on this, Jane.
Online shopping growth, shifting retail patterns, rising rents, business rates, and changes in consumer habits are consistently identified as primary drivers in ONS, Centre for Cities, and British Retail Consortium reports.
TBH I didn’t know River Island were still going. I thought they belonged in the 80s/90s.
I guess their location hidden at the back of Churchill Square doesn’ help. As a middle aged male I’m hardly their target market, but I gather their merchandise is poor, their pricing and marketing leaves a lot to be desired, they have too many stores in poor locations and there’s better alternatives online and on the high street.
Another closure caused by by tories. Shame too late for Labour to save them even though they are turning around economy and we are all felling richer. Sad day
It Labour, with increasing cost and NI, so please get your fact correct.
River Island have been in difficulties well before this Labour government took over.