River Island's Irish arm posts €14.5m loss after UK parent company's restructuring

In August this year, the company was given the green light for a rescue restructuring that would see it close 33 stores in the UK. 

The Irish operations of the clothing retailer River Island has reported an operating loss of €14.5m for its 2024 financial year after it recorded a significant impairment due its UK parent company’s need to enter a restructuring plan, the company’s latest financial statement shows.

During the year ending on December 28, 2024, the company generated a turnover of €46.8m, down slightly from €47.2m in 2023. It reported a gross profit of €2.46m.

However, the company reported a significant operating loss of €14.5m after having recorded an impairment of amounts owed by fellow subsidiaries of €14.9m. After provision for taxation, the amount deducted from reserves was €14.6m.

In 2023, the company reported an operating profit of €7.3m.

“The impairment was recorded due to events that transpired in August 2025 relating to the trading status of the company’s parent undertaking, River Island Holdings Limited, and the company’s relationship to that entity,” the financial statement said.

“The impairment reflects significant trading difficulties within the group in which the company operates which in turn resulted in a technical breach of facilities by the company’s parent undertaking, River Island Holdings Limited, and ultimately necessitated the implementation of a restructuring plan.” 

In August this year, the company was given the green light for a rescue restructuring that would see it close 33 stores in the UK. There had been concerns that the company would collapse after it told creditors during the summer that it could run out of cash if the restructuring plan was not approved and would be unable to pay debts.

At the time, the company’s chief executive Ben Lewis said the company had a strategy in place to ensure the long-term viability of the business.

The financial statement said the company's directors acknowledge that in the first half of 2025, the company faced “material uncertainty over its ability to continue as a going concern”.

“This uncertainty arose as covenant restrictions which rendered the group’s £40m revolving credit facility unavailable,” it said.

“Although the company’s statement of financial position showed net assets in excess of its liabilities, the cumulative position of the River Island Group was less positive and cash flow forecasts at that time indicated that the group would experience a period of cash deficit during 2025, driven primarily by seasonal working capital requirements.” 

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The restructuring plan agreed in August secured the company access to a new £40m million revolving credit facility with Blue Coast and overdraft facilities with Barclays Bank plc.

“The revised facilities have strengthened the River Island Group’s liquidity position and supported the implementation of the restructuring programme,” the financial statement said.

As of the end of 2024, the company had 23 retail outlets in total across the country.