River Island will slip deeper into the loss zone in the 2024 financial year

The ailing British clothing retailer River Island Clothing Co. Limited slipped deeper into the red in the 2024 financial year.

According to an annual report recently published by Companies House, the company suffered a pre-tax loss of 64 million pounds (76 million euros) in the 52 weeks to December 28, 2024. The deficit was therefore almost twice as high as in the previous year, when it was around 33 million British pounds.

The company attributed the higher loss to difficult market conditions and non-cash provisions of 35.7 million British pounds. In addition, the gross margin had declined despite austerity measures.

Sales in the last financial year were 537 million British pounds (639 million euros), 7.1 percent below the previous year’s level.

Management attributed the ongoing downward trend to “inflationary cost pressures.” The falling frequencies on British shopping streets also played a role. As a result, some branches became loss-making.

River Island is now relying on drastic restructuring measures

The company is now pursuing a formal restructuring plan, which was approved by the relevant court on August 8 this year. The retailer explained that this step “became necessary due to considerable uncertainty about the continuation of the company.” Certain credit lines were not available in the first half of 2025.

The current restructuring plan and the parallel transformation concept now aim to restore the company’s financial stability. A return to profitability should be achieved by optimizing the branch portfolio, securing financing and reducing costs. The plan calls for the closure of 33 branches. In addition, rental agreements for a further 71 stores were adjusted. As part of the concept, the clothing retailer has already secured a new revolving credit facility totaling £40 million.