One of the best known brands on the British high street is reported to be at risk, with bosses working on a ‘radical rescue plan’.
Fashion retailer River Island is working with consultants to draw up a way to keep stores going amid tough trading conditions.
Proposals drawn up with PricewaterhouseCoopers (PwC) are expected to be signed off within weeks.
A ‘significant’ number of stores, as well as some of the 5,500 staff employed by the firm, could be affected by the move, Sky News reported.
It is understood that no firm decisions about the future of the business have yet been taken.
Sign up for all of the latest stories
Start your day informed with Metro’s News Updates newsletter or get Breaking News alerts the moment it happens.
River Island has been around for more than 75 years, previously named Lewis and then Chelsea Girl before being renamed to its current iteration in 1988.
In the brand’s latest accounts submited to Companies House, they acknowledged the difficulties faced, saying they made a £33.2 million loss before tax, compared to a £2 million profit the year before.
At the same time, their turnover dropped by 19% to £578.1 million, compared to £715.3 million the year before.
They blamed this on loss of sales and operating costs inflation, including wage growth, and the cost of clearing excess stock.
They said: ‘The market for retailing of fashion clothing is fast changing with customer preferences for more diverse, convenient and speedier shopping journeys and with increasing competition especially in the digital space.
‘The key business risks for the group are the pressures of a highly competitive and changing retail environment combined with increased economic uncertainty.
‘A number of geopolitical events have resulted in continuing supply chain disruption as well as energy, labour and food price increases, driving inflation and interest rates higher and resulting in weaker disposable income and lower consumer confidence.’
In January, the chain was reported to have hired AlixPartners to consult on how to cut costs and boost profits.
The loss of River Island stores would be just the latest in a series of setbacks for the UK high street, which has been blighted by an exodus of shops and businesses in recent years.
Last month, we reported how 78 bank branches were about to close from four banking giants.
NatWest, Lloyds, Halifax and Santander are closing dozens of branches, meaning customers who need in-person services might have to travel further away to visit a branch.
River Island declined to comment.
Get in touch with our news team by emailing us at webnews@metro.co.uk.
For more stories like this, check our news page.
