River Island reports £65m operating loss amid executing restructuring plan

Retail giant River Island has reported a deepening loss and declining revenues in its latest accounts for the 52 weeks to 28 December 2024, as the fashion retailer heads into a major operational reset and leadership overhaul.

The company posted an operating loss of £65.3 million, almost doubling year on year (up 86.3%), while EBITDA fell to a £49.3 million loss, worsening from a £17.2 million loss in the prior period.

Sales dropped 7.1% to £537 million, reflecting continued pressure on margins and the ongoing shift in customer behaviour towards online shopping.

Pre-tax losses nearly doubled as well, rising 92.7% to £64 million, compared with £33.2 million the year before.

River Island entered 2025 with a changed leadership structure, with a new CFO joining in late 2024 and Ben Lewis returning as CEO, after previously leading the business for nearly a decade before stepping down in 2019. The board said the retailer is now focused on restoring “profitable and sustainable growth,” driven by improved margins, like-for-like sales growth, and a more efficient organisational structure.

A key post-balance-sheet development was the High Court approval of River Island’s Restructuring Plan. The retailer secured approval for a restructuring plan under Part 26A of the Companies Act in August 2025, designed to safeguard the business from administration. The plan will see 33 UK stores close and rents slashed at a further 71 locations over the next three years, with some landlords asked to suspend payments entirely.

The plan, supported by £40 million in funding from Blue Coast Capital - the founding Lewis family’s personal investment vehicle - also enables a smaller, more profitable store estate and secures long-term funding through 2028. Without the plan, River Island had projected a cash shortfall of £43 million by early September 2025.

Matthew Weaver KC, representing the retailer in court, said River Island’s financial decline was driven by supply chain disruption, energy price hikes, wage inflation, and the "highly competitive and changing retail environment," including pressure from ultra-fast fashion players like Shein.

According to the recent Companies House filing, the business is already seeing benefits from the shift: gross margin levels have improved, operating costs have been reduced and underlying store sales have returned to growth.