River Island set to axe 350 jobs
River Island is reportedly set to axe almost 350 store management and sales roles as it continues to weather the coronavirus pandemic.
According to an internal memo sent to staff, which was seen by Drapers, CEO Will Kernan said: “We are now in the process of restructuring our retail teams by simplifying our store management structures.
“With a heavy heart, I can confirm that these changes will potentially impact up to 350 store management and senior sales roles.”
Earlier this month it was revealed that the fashion retailer is considering a CVA. According to Retail Week, River Island is considering launching a CVA proposal or another form of administration in order to reduce rents or close some of its stores that have seen lower footfall and sales due to the impact of Covid-19.
However, according to reports executives at the company are concerned about garnering enough support from creditors in order for the proposal to be approved due to River Island’s “stable” financial position.
Under the Insolvency Act the proposal would need to be backed by 75% of creditors.
If River Island does move to close a proportion of its sites across its 300 store portfolio it would join a number of high street retailers who have struggled to keep stores open due to the pandemic.
