River Island has warned it could run out of money by the end of August unless landlords and creditors back a rescue plan that includes the closure of 33 stores and steep rent reductions across 71 more. The high street fashion retailer says it needs £10 million in funding by early September to avoid insolvency — a figure that could rise to £50 million by year-end if the plan fails.
While no stores in South West Wales have been named on the initial closure list, several key locations in the region are part of River Island’s wider rent reduction strategy. The retailer currently operates stores at Oxford Street and Morfa Shopping Park in Swansea, and at Parc Trostre Retail Park in Llanelli — all of which remain open and trading.
The Morfa branch was relaunched in 2022 as a flagship concept store, featuring upgraded interiors and a new layout designed to reflect changing shopper habits and boost in-store experience. At the time, River Island said the investment was part of a broader transformation strategy aimed at modernising its retail footprint.
What’s driving the crisis?
River Island blames its financial troubles on a “sharp rise in the cost of doing business” and the shift to online shopping, which has left it with a store portfolio “no longer aligned to customer needs.” The company swung to a £33.2 million loss in 2023, with sales down 19% to £578.1 million.
The restructuring plan — drawn up by advisers at PwC — will be voted on by creditors next month and then presented to the High Court for approval. If successful, it will unlock a £40 million emergency loan from the Lewis family, who founded and still control the business.
River Island employs around 5,500 people and operates 223 stores across the UK and Ireland. The company insists that all stores and its website remain open and trading as usual while the plan is under consideration.
