River Island to cut 110 jobs with hundreds more at risk as 33 shops to shut in huge shake-up

RIVER ISLAND is set to axe 110 jobs, as it continues with restructuring plans that will see 33 shops shut for good.

The high street fashion retailer previously axed 100 staff members in January, meaning that its redundancies are expected to surpass 200 by the end of the year.

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According to reports from Drapers, River Island is currently in talks with the impacted head office employees.

It is currently unclear which departments are affected.

33 stores to shut

Last Friday, the High Court approved a major restructuring plan for the business, which will see at least 33 stores shut.

The plan has been put in place to help write off the fast-fashion retailer’s debts.

Ben Lewis, CEO of River Island, said: “We are pleased that River Island’s restructuring plan has been approved by the High Court.

“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.

“Recent improvements in our fashion offer and shopping experience are starting to show results, and the restructuring plan will enable us to align our store estate to our customers’ needs.

“We are grateful to our suppliers, landlords and other stakeholders for their constructive engagement and shared confidence in River Island’s future.”

Rent reductions

River Island also asked for rent reductions at a further 71 of its stores, and although it failed to get landlord support for this, the High Court ruling means that it is still likely to take place.

A leading insolvency and restructuring lawyer said the High Court’s decision has been taken “over the objections of landlords”.

Michelle Quinn, partner at Grosvenor Law, said: “Absent any successful appeal, the landlords will now be subject to what is called a ‘cross-class cram down’ meaning that the restructuring plan will be imposed on them despite their objections.”

The Sun understands River Island is working with the landlords to minimise the number of store closures and job losses.

A spokesperson for the fashion chain said: “We regret any job losses as a result of store closures, and we will try to keep these to a minimum.”

The restructuring plan, put forward by PWC revealed that if the High Court had not approved it, River Island would not be able to continue trading and would go into administration.

River Island currently has more than 250 stores across the country and around 5,500 employees.

The plans mean more than 140 stores and thousands of jobs are likely to be saved.

New funding is also expected to be injected into River Island now the restructuring plan has been approved.

The retail sector has struggled in recent years because of the rise of online shopping, lockdowns during the coronavirus pandemic and decreased customer spending.

Earlier this summer, the owners of Poundland confirmed they would shut 68 stores with 82 more at risk.

Both Hobbycraft and The Original Factory Shop are also shutting branches as part of restructuring efforts.