River Island at risk as 'radical rescue plan' drawn up to save high street fashion retail giant
Significant numbers of River Island stores and jobs are reportedly at risk as its parent company draws up a radical rescue plan for the high street fashion retailer.
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PricewaterhouseCoopers (PwC) have reportedly been drafted in by the chain's owns to draw up a formal restructuring plan.
The proposals are expected to be finalised within weeks but are subject to sign-off.
Any solid decisions about the future of the business have yet to be taken, according to Sky News.
River Island is one of the UK's most popular clothing chains, with around 230 stores nationwide and roughly 5,500 employees.
Read more: WH Smith to complete sale of high street chain within weeks
River Island Holdings Limited said fashion retail was a "fast changing" market with "increasing competition especially in the digital space" in its latest filing with Companies House.
it added: "The key business risks for the group are the pressures of a highly competitive and changing retail environment combined with increased economic uncertainty.
"A number of geopolitical events have resulted in continuing supply chain disruption as well as energy, labour and food price increases, driving inflation and interest rates higher and resulting in weaker disposable income and lower consumer confidence."
Its accounts for River Island Clothing Co for the 52 weeks ending 30 December, 2023 show the firm earned a £33.2m pre-tax loss.
Meanwhile, turnover during the year plunged by more than 19% to £578m. 2024 figures remain unavailable.
The firm has been hit by disruption in their high level management, with multiple high ranking members leaving or being reassigned over the year.
It was founded by Bernard Lewis and was originally named Lewis and Chelsea Girl until it rebranded as River Island in 1988.
It's current CEO Ben Lewis, nephew of Bernard Lewis, who took the reigns in February after previously holding the post for 10 years before quitting in 2019.