River Island faced significant financial challenges as revealed in its latest annual results.
The brand’s operating loss surged to £65.3m for the 52 weeks ending 28 December 2024, marking an alarming 86.3% increase.
Moreover, EBITDA experienced a dramatic shift, from a loss of £17.2m the previous year to a £49.3m loss in 2024, reflecting a 186.6% change.
Sales fell by 7.1% year-on-year, totaling £537m.
The company’s pre-tax loss also nearly doubled, climbing 92.7% to reach £64m during this period, compared to a £33.2m loss in the prior year.
These results arrived after River Island obtained High Court approval for a restructuring plan last August, aimed at keeping the renowned fashion chain operating.
According to a filing at Companies House, “These accounts have been impacted by a significant post balance sheet event where the company undertook a formal Restructuring Plan (RP).
“Post RP, the company benefits from a new financing facility secured until 2028, which incurs no cash interest servicing costs, alongside a reduced store base resulting in improved profitability per store, and a considerably lowered administration and distribution cost structure.
“Concurrent with this, the company is actively implementing a broad business transformation plan throughout 2025 to cut costs, enhance margins, and boost sales, leading to greater profitability.”
