River Island’s founding family is preparing a major rescue plan that could lead to widespread store closures and job losses.

It was reported that the United Kingdom fashion retailer has hired advisers from PricewaterhouseCoopers to help craft a formal restructuring strategy, according to Sky News.

The plans, due to be completed in the next few weeks, are still awaiting final approval, with sources stressing that no concrete decisions have been made about the company’s future.

River Island is one of the UK’s most established fashion retailers, operating around 230 stores across the country and employing about 5,500 people.

Originally known as Lewis and later Chelsea Girl, the business was founded in 1948 by Bernard Lewis, adopting the River Island name nearly 40 years later.

According to its accounts for the 52 weeks ending 30 December 2023, River Island Clothing Co reported a pre-tax loss of £33.2 million.

A restructuring plan is a court-supervised process that allows financially troubled companies to reach agreements with creditors—such as landlords—in an effort to avoid formal insolvency proceedings.

According to the report, a source suggested that, if approved, a restructuring plan for River Island could be unveiled in the coming weeks.

As of the weekend, the extent of potential store closures and job losses under the proposed rescue plan remained unclear.

In its most recent filings with Companies House, River Island Holdings Limited highlighted a range of financial and operational risks facing the business.

“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.”