River Island confirms 100 more jobs at risk as it enters restructuring plan
River Island has confirmed that around 100 jobs are "at risk" following last week's High Court approval of its restructuring plan. This adds to the 100 job cuts that were announced in January.
The retailer is currently in consultation with affected employees, although the specific departments involved in the latest round have not been confirmed.
This development follows job cuts earlier in January, when around 100 roles were removed across buying, merchandising and HR functions.
More job cuts are expected after the High Court's approval on Friday for a restructuring plan designed to pull the fashion chain back from the brink of administration. Sir Alastair Norris approved the restructuring plan, with a written judgment due at a later date.
As part of the restructuring, the London-based retailer will shutter 33 UK stores and slash rents on a further 71. Plans include reducing rent on 38 of its stores by between 25% and 75% for the next 36 months, while 24 locations will move to a zero-rent agreement. Nine River Island stores are set to continue paying full rent.
The crisis at River Island has been building over the past year. In June, the company prepared a formal restructuring plan that would put a significant number of stores and jobs at risk. PwC took over advisory duties from AlixPartners, which had been hired in early 2024 following a £32.3 million pre-tax loss in 2023 and a 19% fall in turnover to £578.1 million.
The company has cited multiple headwinds in recent reports, including rising operational costs and increasing digital competition from ultra-fast fashion players such as Shein.
In written submissions to the court, Matthew Weaver KC, representing River Island, said that the sales and footfall dip were due to "the pressures of a highly competitive and changing retail environment as well as the prevailing trend away from high street retail stores to online shopping.
"A number of geopolitical events have also resulted in continuing supply chain disruption which, together with energy, labour and other price increases, has resulted in a cost base that’s too high and unsustainable at its current level."
Despite River Island's lifeline, the industry remains divided on whether this is a genuine turning point or just delaying an inevitable closure.
