River Island's Telford store among those at risk as firm draws up 'rescue plan' - here's what's being planned
Telford's River Island store is at risk as owners draw up rescue plan
Bosses at fashion chain River Island are set to draw up a restructuring plan after posting multi-million pound losses for the last financial year.
The company, which has a branch in Telford Shopping Centre, has 230 stores nationwide and employs around 5,000 people.
Accounts posted for the most recent financial year showed a loss of £33.2m with turnover during the year falling by more than 19% to £578.1m, with the company saying falling sales and tough trading condiitons were to blame.
Now, the firm is reportedly set to bring in external advisers as it draws up a rescue plan for the group, with details of a potential restructing programme set to arrive within weeks.
Earlier this year, the business launched a redundancy programme at its London head office after bringing in external advisors AlixPartners in an effort to make the business more profitable. The move saw changes to internal departments such as buying, merchandising, and HR.
"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," said a statement with the company's latest set of accounts.
"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."
The news comes after a turbulent few months for the UK's High Street retailers, which has seen store closures and redundancies at Hobbycraft, The Original Factory Shop and Lakeland.
Midlands firm Poundland's new owners could also be announced shortly as owners Pepco complete an auction process for the Willenhall brand this summer.
