River Island job cuts now expected to surpass 200 roles

As River Island embarks on its now court-backed restructuring plan, details of how the retailer intends to rescue itself are coming into view. According to new reports, the company is preparing to cut around 110 roles as part of the strategy, bringing its number of anticipated redundancies for this year to over 200.

Media outlet Drapers reported that River Island is in consultation with head office employees. Which specific departments are impacted remains unclear. This latest round of job cuts comes on the back of 100 layoffs initiated across buying, merchandising and HR in January.

Additional redundancies are expected as part of River Island’s High Court approved restructuring plan, which will allow for the closure of 33 UK stores and rent cuts across 71.

Further details of such plans have now been made available to the media. According to multiple platforms, River Island is looking to issue discounts between 25 and 75 percent on the rent of 38 stores over 36 months. It will also move to zero rent on 24 units. Nine stores, meanwhile, will receive full rent.

River Island was forced to take its restructuring proposals to court after it failed to secure creditor support, including from landlords, in an earlier vote. In a submission to the court, Matthew Weaver KC, a representative for the company, said that it had “not been able to reverse” its financial difficulties.

When touching on the challenges River Island faced, Weaver cited issues like declining footfall and sales due to the “highly competitive and changing retail environment as well as the prevailing trend away from high street retail stores to online shopping”.