High street crisis deepens as major retailers face closures and job cuts

Bira calls for urgent government action as River Island and Hobbycraft announce restructuring plans, and Claire's collapses into administration.

Bira has expressed grave concern over the mounting challenges facing the UK high street, as a series of major retailers announce significant restructuring plans, store closures and job cuts.

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Andrew Goodacre, CEO of Bira, said: "It's deeply saddening to see long-standing high street chains announcing significant profit reductions and facing existential threats. These developments provide yet more examples, if they were needed, of the urgent need to support high street businesses across Britain.

"What we're witnessing is further evidence of persistently low consumer demand and reduced discretionary spending. Our recent Heartbeat Survey revealed that 46% of independent retailers reported worse trading in Q2 2025 compared to the same period last year, with stretched household budgets leaving customers unable to afford discretionary purchases. With food inflation set to increase to 6% by the end of the year, we can expect this worrying trend to continue as people see their bills for essential items rise even further.

"The government must act now to reduce business rates and close the low-value import loophole that is devastating our high streets. We cannot afford further delay."

The warning comes as several prominent retailers face severe difficulties:

River Island is set to cut another 110 roles under its restructuring plan, bringing total redundancies to over 200 this year. The fashion retailer has secured High Court approval for a plan that includes closing 33 UK stores and implementing rent cuts of between 25% and 75% across 71 locations.

Hobbycraft is closing nine more stores this month and in September, affecting locations in Bromborough, Southport, Stratford-upon-Avon, Wigan, Maidenhead, Chichester, Stafford, Kings Lynn and Crayford. The arts and crafts specialist is restructuring to try to secure the future of at least 99 stores and 1,800 jobs.

Claire's has collapsed into administration in the UK and Ireland, putting more than 2,150 jobs at risk after failing to find a suitable buyer. The accessories chain, which operates nearly 300 UK stores, had warned staff that bailiffs may attempt to recover debts and stopped accepting gift cards before the administration announcement.

Mr Goodacre highlighted a significant factor contributing to the crisis: "We're also seeing further evidence of the devastating impact of the loophole that allows low-value items to enter the UK duty-free and often VAT-free. These imports, valued at £5.9 billion annually, are direct replacements for products sold by retailers like Claire's and Hobbycraft, representing £5.9 billion taken directly from our high streets and the UK economy."

With high street businesses seeing their models collapse due to ever-increasing costs, consistently low discretionary expenditure, and the industrial-scale growth of low-value imports into the UK, Bira is calling for immediate government action to close the low-value import loophole, reduce business rates rather than increase them, and implement policies that support consumer confidence and discretionary spending.

The urgency of business rates reform was underscored by Bira's recent research, which found that 47% of independent retailers identified this as their top priority for government action.

"The government must act decisively to level the playing field for UK retailers," Mr Goodacre concluded. "Every day of delay means more job losses, more empty shops, and further decline of our vital high streets. The time for action is now."