River Island plans to close 33 UK stores as part of a major restructuring strategy designed to cut costs and secure the future of the high street retailer.
A further 71 stores could also be at risk, depending on the outcome of ongoing negotiations with landlords over rent reductions.
In a statement issued on Friday, Ben Lewis, River Island's chief executive, 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. We have a clear strategy to transform the business to ensure its long-term viability.
"Recent improvements in our fashion offer and in-store shopping experience are already showing very positive results, but it is only with a restructuring plan that we will be able to see this strategy through and secure River Island's future as a profitable retail business.
"We regret any job losses as a result of store closures, and we will try to keep these to a minimum."
Hundreds of jobs are at risk as River Island proposes to close 33 of its 230 stores as part of a restructuring plan to be voted on by creditors in August, Sky news has revealed. A further 71 stores could close subject to talks with landlords.
The family-owned fashion chain, which employs around 5,500 people, is seeking approval from creditors to proceed with the plan, with a formal vote scheduled for August. The proposals are being overseen by advisory firm PwC.
River Island's owners are drawing up a restructuring plan PA The company has not confirmed how many jobs could be affected by the closure of the initial 33 stores, and it has yet to disclose the scale of the rent reductions being sought in negotiations with landlords.
Sources suggest that new funding will be injected into the business if the proposed restructuring plan is approved by creditors in August.
According to its latest accounts, River Island Clothing Co reported a £33.2 million pre-tax loss for the 52 weeks ending 30 December 2023. Turnover fell by more than 19 per cent over the same period, dropping to £578.1 million.
The filings on Companies House also highlighted increasing financial and operational risks facing the business.
The Clubcard Christmas Savers scheme helps customers to save their Clubcard vouchers throughout the year so they can use them for their big Christmas shopPAThey said: "The key business risks for the group are the pressures of a highly competitive and changing retail environment combined with increased economic uncertainty.
"A number of geopolitical events have resulted in continuing supply chain disruption as well as energy, labour and food price increases, driving inflation and interest rates higher and resulting in weaker disposable income and lower consumer confidence."
If creditors back the rescue plan, River Island hopes to secure more sustainable rent terms and reduce its fixed store costs and keep a strong presence on the high street in key areas.
Customers can continue to shop online, and the company has said it remains committed to offering high street presence in key locations.
The move reflects a wider trend in the retail sector
GETTYThe move reflects a wider trend in the retail sector.
Other big names such as New Look, Hobbycraft, Poundland and Lakeland are also engaging in formal restructuring processes in response to soaring business rates, energy costs and inflation-linked tax pressures.
For now, hundreds of staff face an uncertain future as the company seeks to stabilise its finances and adapt to a rapidly changing retail landscape.
An identical process is being used to close scores of Poundland shops and slash rents at hundreds more.
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