River Island plans to close 33 stores, putting hundreds of jobs at risk
River Island plans to close 33 of its 230 stores and a further 71 are at risk under a restructuring programme that could put more than 1,000 jobs on the line.The family-owned company, which employs about 5,500 people, blamed a “migration of shoppers from the high street to online” and higher costs for the need to make the drastic changes to stem heavy losses.The plan, which is being put together with help from the advisory firm PricewaterhouseCoopers and is to be voted on by creditors in August, involves the closure of 33 stores, with the future of a further 71 dependent on talks with landlords to improve rental deals.Ben Lewis, the chief executive of River Island, said the company regretted any job losses and would “try to keep these to a minimum”.He said: “River Island is a much-loved retailer, with a decades-long history on the British high street.
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,”River Island swung to a £33,2m loss in 2023, according to the latest accounts filed at Companies House, after sales fell by more than 19% to £578,1m.
It made profits of £2m in 2022.In January, the group launched a cost-cutting effort including a redundancy programme at its London head office, affecting departments such as buying and merchandising.River Island was formerly known as Chelsea Girl, and it began selling clothing under the name Lewis’s in the 1940s.Its troubles have emerged as the budget chain Poundland launched a similar restructuring programme, with the eventual aim of shutting up to 150 stores, two distribution centres and ending online sales, putting 2,000 jobs at risk.On Friday, the British luxury goods maker Mulberry announced plans to raise £20m to fund a turnaround plan as it admitted it would make a loss of £23m in the year to 29 March, a similar loss to the previous 12 months.
Sales are expected to fall to £120m, down from £153m.Retailers across the high street are coming under pressure from the rising cost of wages and taxes, including national insurance and business rates, while consumer spending remains weak amid concerns about geopolitical events and inflation on basics such as food and energy.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionThe rapid rise of cheap online sellers such as Shein, Temu and Amazon has also put high street retailers under pressure as visitor numbers to physical stores remain subdued.Matthew Padian, an insolvency expert at the law firm Stevens & Bolton, said he expected more retailers would turn to restructuring plans to reduce their store estates as the new system, introduced during the pandemic, became better understood.“There will be more coming down the track as it doesn’t look like it is getting any easier for retailers,” he said.
Keir Starmer’s AI tsar to step down after six months in role
Keir Starmer’s artificial intelligence tsar, a key figure in steering the government’s approach to artificial intelligence, is stepping down after six months in the role.Matt Clifford, the author of the government’s AI opportunities action plan, said he would leave his post next month for personal reasons.He described his work on drafting and implementing the 50-point plan as a “privilege”, adding he was “hugely optimistic about the UK’s potential to be an AI superpower”.“For family reasons, I will step back from my role as the prime minister’s adviser on AI opportunities at the end of July, but I’m delighted that this important work will continue across government.”A government spokesperson said Starmer had thanked Clifford, who was appointed in January, for his “dedicated work” on AI policy
Whip’s resignation over disability benefit cuts not a sign of major rebellion, Nandy says
Downing Street will not suffer a major rebellion when MPs vote next month on cuts to disability benefits, Lisa Nandy has insisted, despite the resignation of a government whip on Thursday.The culture secretary said Vicky Foxcroft, who resigned from the government saying she could not vote for the controversial measures, was the only frontbench MP she knew of who had been thinking of quitting.Despite 170 Labour MPs having expressed concerns about the bill, which will make it harder for disabled people to claim personal independence payments (Pips), Nandy said the government was not expecting many other Labour MPs to defy the whip.Asked on Friday whether she was detecting signs of a major rebellion, Nandy told BBC Breakfast: “I’m not. It would be wrong to say that, when you bring forward big reforms there aren’t concerns and there aren’t dissenting voices, of course there are
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Labour MP resigns as government whip in protest at benefit cuts
The Labour MP Vicky Foxcroft has resigned as a whip in protest at the government’s welfare plans, saying she will not be able to vote for the cuts to disability payments.The government is braced for a major rebellion on the welfare bill, which includes significant changes to personal independence payments for disabled people.Foxcroft, the MP for Lewisham North who was shadow disability minister before the general election, said she was unable to do her job as a whip because she disagreed with the changes and did not believe that cuts were part of the solution to rising inactivity.In a letter to the prime minister, Foxcroft said the benefits system was “in desperate need of reform” but her experience as shadow disability minister had showed her that the struggles of disabled people and organisations were “even tougher than I had imagined”.She said: “The last Conservative government left many in poverty and living life in fear of losing their support, not getting access to the right medical care, not having suitable housing and not being able to participate fully in society
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