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River Island hires advisors after losing 'tens of millions'

Chloe Burney
22 January 2025

A cornerstone of the British high street, River Island has reportedly drafted in advisors AlixPartners after revealing a pre-tax loss of £32.3 million late last year.

The privately owned fashion retailer has hired AlixPartners, which is also working with Poundland the revive the discounted retailer. The firm will work on a cost reduction and profit improvement exercise at the chain, according to Sky News.

Details are yet to be disclosed, although it is not believed to encompass formal restructuring work that would lead to store closures. It currently operates 250 stores.

This comes as the high street faces national insurance tax increases, which are set to hit the retail sector particularly hard. In October's Budget, the Government increased the rate of national insurance paid by employers from April and also reduced the threshold that employers start paying from £9,100 to £5,000.

Retailers of all sizes have complained about the impact of forthcoming increases. NEXT's wage bill is set to rise by £70 million. Neanwhile, Marks & Spencer revealed it will be facing a £120 million hit to its wage bill.

In October 2024, River Island declared it’s a "year of reset" after revealing a pre-tax loss of £32.3 million for the year ending 30 December 2023.

The year prior, the fashion retailer achieved a profit of £7.5 million in the previous year. However, sales dipped by 15% to £701.5 million, down from £825.8 million the year prior, according to a filing on Companies House.

The company blamed increased competition and customers looking for "more diverse, convenient and speedier" shopping experiences for its sales decline.

River Island said: "2023 was a year of reset for the business. Product ranges have been re-focussed and a new leadership structure put in place with several key senior hires. The business has invested in customer propositions with stronger product ranges, an enhanced environment and an elevated digital experience.

"Despite the challenging trading environment so far this year, we remain positive about the outlook."


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