River Island back in black after winning fight for survival
River Island has swung back into profit after narrowly avoiding bankruptcy last year.
The fashion retailer, which has collaborated with celebrities and influencers including Olivia Attwood and Tolami Benson, the girlfriend of England and Arsenal star Bukayo Saka, delivered a pre-tax profit of £11.6million for 2025 this week, swinging back from a loss of £124million in 2024.
‘We are very pleased and optimistic in what we have been doing – and the actions we have been taking are having a rapid impact on the performance of the business,’ chief executive Ben Lewis told The Mail on Sunday.
The firm said it was focusing its investments on digital sales, while also planning several ‘selected’ store openings in the UK and Ireland later this year.
It marks a remarkable comeback for River Island, which in August last year narrowly staved off collapse as it came under pressure from rising costs, with its shops facing competition from the rise in online shopping.
The company went through a gruelling battle for survival which saw it close 46 of its 220 outlets, with the loss of about 1,000 jobs. It also negotiated a series of deals with landlords to slash its rents, which allowed it to pay down debt.
Origins: River Island was founded in 1948 under the Lewis and Chelsea Girl brand before rebranding in the 1980s
Lewis, who left the business in 2019 after more than a decade as chief executive only to return last year, said a key part of the brand’s renewed success had come from a deal to sell its outfits on Marks & Spencer’s website as of last month.
‘They have huge, huge reach and have allowed us to remind customers who drifted away from the group over the last few years that we are doing great designs now,’ he said.
He added that the company’s strategy of moving quickly to turn current clothing trends into fast fashion was yielding results.
‘The biggest trend at present has been a colour – chocolate. I’ve been selling one chocolate item every four seconds, tops, skirts, dresses, handbags, belts, and hats,’ Lewis said.
The company is also doing more collaborations. Attwood, a former Love Island contestant, launched a collection earlier this year.
However, Lewis said business remained tough despite the restructuring and transformation of the business.
‘Costs for the retail industry have been going up faster than the amount of money being spent on the High Street and fashion. You either must manage these costs, or you must get the economy to grow,’ Lewis said.
River Island, which was founded in 1948 by the 59-year-old’s uncle Bernard Lewis, who died this year at the age of 100, remains in the control of its founding family, who pumped £40million into the firm last year to help stave off collapse.
The family is said to be keen to continue as a private business with no plan to bring in other investors or offer shares to the public.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Freetrade
Freetrade
Investing Isa now free on basic plan
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.