River Island outlines deeper job cuts as restructuring gathers pace

River Island has warned that more than 200 head-office roles will disappear this year as the fashion chain pushes through a court-approved restructuring designed to secure its long-term survival.

The retailer told staff that a fresh consultation on about 110 posts is under way, on top of roughly 100 redundancies made in January, according to industry publication Drapers. Departments affected by the latest round have not been disclosed.

Job losses are part of a wider cost-saving plan that will also see 33 of River Island’s 230 UK stores close and rents reduced across a further 71 locations. Court papers show the company intends to impose rent discounts of between 25 per cent and 75 per cent on 38 shops for three years, while 24 sites will move to a zero-rent basis.

The high court approved the restructuring last week after a majority of creditors voted in favour, giving the family-owned business breathing room to tackle a funding shortfall that could have reached £50 million by the end of the year. In June the company warned it could run out of cash by late August without a deal.

Ben Lewis, River Island’s chief executive, said the ruling would let the chain reshape its estate to better match shopping habits. “We are pleased that River Island’s restructuring plan has been approved by the high court,” he said. “We have a clear transformation strategy to ensure the long-term viability of the business, and this decision gives us a strong platform to deliver this.”

Although the plan secures more than 4,000 jobs, a further 1,000 roles and 70 outlets remain at risk as online competitors such as Shein and Temu pressure high-street operators. River Island, founded as Lewis’s in the 1940s, said rent cuts were essential to keep stores viable in an era of rising ecommerce and shifting consumer footfall.

Analysts note that several landlords opposed the scheme, arguing that the company should contribute more capital itself, but the court used cross-class cram-down powers to bind dissenting creditors.

The retailer must now implement measures swiftly to hit a target of raising £10 million of liquidity by mid-September. Failure to meet that milestone could trigger fresh pressure from suppliers and lenders, according to documents filed with the court.



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