A major fashion retailer is closing a store in a major blow to the UK high street. River Island is shutting its branch at the Old Market Shopping Centre in Hereford on January 31.

This comes as River Island moves ahead with plans to close 33 stores as part of a restructuring bid following heavy losses. The clothing retailer’s restructuring plan was approved by the High Court in August. Besides the closures, rent reductions and debt will be written off for 71 stores. River Island currently has over 200 shops nationwide, with 122 of these remaining unaffected, and employs around 5,500 staff. Ben Lewis, CEO of River Island, said: “We have a clear transformation strategy to ensure the long-term viability of the business, and this decision gives us a strong platform to deliver this.” 

He added: “Recent improvements in our fashion offer and shopping experience are starting to show results, and the restructuring plan will enable us to align our store estate to our customers’ needs. 

“We are grateful to our suppliers, landlords and other stakeholders for their constructive engagement and shared confidence in River Island’s future.”

In June, Mr Lewis said that although River Island is “a much-loved” British retailer, a rise in online shopping had left the business with “a large portfolio of stores that is no longer aligned to our customers’ needs”. 

He added that a “sharp rise in the cost of doing business over the last few years has only added to the financial burden”. 

The business reported a £33.2m pre-tax loss in 2023, following a 19% decline in sales, with losses nearly doubling to £64m in 2024, according to its accounts.

It has requested landlords to cut its rent for three years and potentially stop payments on some units to try and curb its losses. The plan was approved by a High Court judge in August of last year.

Poundland has revealed that an additional 10 UK outlets will close, bringing the total number of shops disappearing from British high streets to 30 during October and November.

The struggling retailer has confirmed it will revert to straightforward £1, £2 and £3 grocery pricing throughout all its UK branches as the chain attempts to revive its fortunes after narrowly escaping administration.

The discount retailer pledged to price approximately 60% of grocery products at £1 throughout its network following the alterations, which follows a five-month trial at 17 outlets in the West Midlands.

The company stated the decision will see it return “back to its roots” and signal “the end of additional price complexity”, with straightforward pricing scheduled to be implemented across general merchandise and clothing ranges in forthcoming months.

The total of Poundland outlets is anticipated to fall to roughly 650 or 700 from 800 earlier this year as rental agreements expire or property owners exercise any option to serve notice.

The chain has confirmed that massive clearance sales are occurring in branches which are shutting down to clear the merchandise.

A Poundland spokesperson said: “Customers will be able to take advantage of significant savings as these stores prepare for closure in the days ahead.

“The reductions of up to 40pc will see items marked down in price until they’re sold and cover all the stock in each store from homewares to groceries and clothing to health and beauty.”

In addition to the 20 stores already slated for closure in the next two months, an additional 10 will be shuttered in November as leases expire, according to the chain. The retailer announced in June, after being acquired by investment firm Gordon Brothers, that it intended to close 68 shops and two warehouses in the UK, putting 1,300 jobs at risk.

Darren MacDonald, Poundland’s UK country manager, said: “We know how disappointing it is when we leave a store, but before we close our doors for a final time, we’re determined to say goodbye by offering even more amazing value to customers.

“The special reductions, on top of the value we provide in every store, will help us leave locations we’re leaving with pride.

“And when we close our doors, we look forward to welcoming customers to one of the hundreds of Poundland stores we’ll continue to operate right across the UK.”

11 Poundland stores have already closed this month:

• Twickenham (October 5)
• Westhoughton (October 5)
• Market Harborough (October 9)
• Lowestoft (October 10)
• Colne (October 11)
• Rochdale (October 13)
• Leicester (October 17)
• Tenby (October 18)
• Blackpool – Cherry Tree Retail Park (October 25)
• Deal (October 27)
• Thurrock (October 27

The retailer is set to shut one more store before the end of October:

Walsall (October 29)

While the other previously announced Poundland closures for November are:

• Matlock (November 2)
• Carlisle (November 9)
• Burnley (November 9)
• Witham (November 12)
• Sidcup (November 14)
• Peckham (November 20)
• Launceston (November 29)
• Cameron Toll (January 20, 2026)

A further 10 Poundland closures have now been added to the list:

• Hailsham (November 2)
• Perry Barr (November 2)
• Loughborough (November 14)
• New Malden (November 16)
• Dalston (November 24)
• Beeston (November 27)
• Melton Mowbray (December 4)
• Droitwich (December 9)
• Hempstead Valley (December 31)
• Bexhill (January 5, 2026)

All these Poundland closures are due to leases expiring.

The group also noted that these changes have helped reduce shoplifting by over a quarter in trial stores, by discontinuing the sale of higher-priced items that were attractive to thieves, such as £5 dishwasher tablets.

As part of its recovery plans, Poundland has managed to avoid collapse following High Court approval for a major restructuring plan earlier this week. The retailer was on the brink of running out of money just days before the approval.

The scheme will inject up to £60 million of new funding to keep the retailer afloat and allows it to proceed with a store closure programme. This will result in 68 shops closing, affecting around 1,000 workers.

Barry Williams, Poundland’s managing director, said: “Customers have told us loud and clear during these pilots that they will back a simpler, more focused Poundland that keeps its promise of amazing value.

“We’ve heard them, and the clear success of our pilot is why I’m confident that a Poundland that’s focused on the simple value our customers expect, has a bright future.”

In addition to the pricing overhaul, Poundland will also roll out a re-focused grocery range. It has already been extended to five stores outside of the West Midlands, in Manchester, Liverpool, Hanley, Brixton and Wandsworth.

Poundland stated that when complete, around 60% of grocery items will be priced at £1, 20% will be at £2, and 20% at £3. The firm, which was founded in Burton upon Trent, Staffordshire, in 1990, was sold by Pepco Group to Peach Bidco, a subsidiary of private equity firm Gordon Brothers, for £1 in June.

High street fashion giant River Island is teetering on the edge of collapse and could run out of cash within weeks unless landlords and creditors back a drastic rescue deal in court.

The embattled retailer has warned it faces insolvency unless creditors approve a sweeping restructuring plan, which includes shutting 33 stores, slashing rent at 71 more, and writing off significant debts. The proposal, designed to avert a worsening liquidity crisis, is set to be heard at the High Court next week reports The Telegraph.

If three quarters of creditors vote in favour, an emergency cash injection from River Island’s billionaire owners, the Lewis family, will be triggered. This would allow the business to keep trading and cover its bills. But if the deal is rejected, River Island has admitted it will effectively run out of money by the end of August and be unable to meet its obligations.

The company has warned it would be forced into administration or other insolvency measures if the rescue effort fails. The stark revelations are laid out in a detailed 800-page restructuring blueprint drawn up by advisers at PwC.

It discloses that the retailer is facing a £10 million shortfall by early September, which could rise to £50 million before year-end. River Island employs more than 6,000 people, with 5,300 staff working in its shops and 950 based at its West London headquarters.

The company has blamed spiralling operating costs and a shift in shopping habits for its financial woes, admitting its once-vast store portfolio “is no longer aligned to our customers’ needs”.

PwC now faces the task of persuading 75 percent of creditors to approve the proposals. However, sources claim resistance remains strong among some landlords.

“This is family-run, they’ve just overstretched, and it’s unfair that the landlords will struggle because they haven’t maintained their relevance,” said one landlord whose sites were not impacted.

“We get cast as the big bad landlords creaming off imaginary super-profits, when the reality is very far from that. Nobody wants retailers to be forced into administration, but equally landlords don’t want to have retailers on a two-year lease at no rent that might fail anyway.”

The plan includes writing off tens of millions of pounds in unpaid rents and asking landlords of 24 stores to accept no rental income at all for the next three years. Other stores face rent reductions of between 25 and 75 percent.

Major landlords such as British Land, the Crown Estate, and Mike Ashley’s Frasers Group are among those affected, though all declined to comment.

Local councils will also feel the impact, with River Island intending to walk away from outstanding business rates. The cuts coincide with the start of the business rates year in April.

In a bid to cut costs further, the chain is also planning to return over 30 company cars leased through a vehicle scheme, with the debts on those vehicles to be written off completely.

A River Island spokesman said: “River Island circulated its proposals for a restructuring plan to creditors on June 20. In combination with the company’s ongoing Transformation Strategy, the plan is a proactive measure to place the company on a firm footing.

“We have been having positive conversations with key stakeholders and are confident that we will achieve approval of the plan in the next few weeks.”

Dobbies Garden Centres has officially confirmed the shutdown of 12 outlets following the green light for its restructuring proposal by the Court of Session in Scotland. This downsizing move will see the popular horticultural chain sever leases on ten unprofitable locations, with Altrincham’s outlet among those to close doors.

Moreover, two more sites, Morpeth and Stapleton, are set to change hands, being taken over by other operators within the same industry. Despite earlier fears, Dobbies’ Antrim flagship store has been saved from closure after striking a deal with the property owner, Retail Gazette reported today.

In a stark revelation made in September, the firm had disclosed intentions to shutter 17 loss-making stores before the calendar ticks over to a new year, which would potentially impact 465 workers out of a total workforce of 3,600. These closures were to encompass both the mainline and ‘Little Dobbies’ outlets.

Accordingly, Dobbies articulated that this critical restructure, supplemented by other strategic undertakings, is crucial to lay the groundwork for returning to a financially sound state, unlocking fresh investment horizons and crafting a robust, well-financed foundation for future business pursuits.

A representative for Dobbies conveyed their contentment with the development, stating: “We’re pleased to have worked constructively with landlords on the Restructuring Plan (RP).”

They added: “The approval of the RP means we can now be focused on the future, building a strong platform for a return to sustainable profitability in our stores across the UK. Thank you to all our colleagues, customers and suppliers who supported us during this process.”

The closures will mean large clearance sales will be underway at the sites.

The stores set to close are:

• Altrincham on 17 December
• Gloucester on 15 December
• Gosforth on 19 December
• Harlestone Heath on 17 December
• Huntingdon TBC
• Inverness on 23 December
• King’s Lynn on 15 December
• Pennine on 15 December
• Reading on 23 December
• Stratford-upon-Avon on 23 December

Garden centre chain Dobbies has announced it is shutting down 17 stories in a cost cutting move, it has revealed. The targeted outlets are ‘unprofitable’ and bosses said it was to ‘address historically uneconomical rent costs‘.

Dobbies said the restructuring plan will see it close 17 unprofitable stores in total – which includes 11 main garden centres and six Little Dobbies stores. It confirmed that 465 of its 3,600 employees impacted. The move will leave it with 60 garden centres.

The retailer said it will also work with landlords to seek temporary rent reductions at a further nine sites.

While the process is ongoing, all shops will continue to operate as normal. It also noted that there would be no impact to suppliers.

The gardening specialist expects the 17 sites to cease trading by the end of the year, subject to the restructuring plan being successfully approved.

The move comes after Dobbies began planning a financial overhaul of the business in August, which it warned would lead to rent cuts and shop closures.

The stores set to close are:

• Altrincham

• Antrim

• Gloucester

• Gosforth

• Harlestone Heath

• Huntingdon

• Inverness

• King’s Lynn

• Pennine

• Reading

• Stratford-upon-Avon