River Island drafts in AlixPartners to tighten costs
From 1 April businesses in the UK will be required to pay more in National Insurance contributions for employees
River Island has brought in AlixPartners to work on a cost reduction and profit improvement exercise ahead of the planned tax rises in April, according to reports from Sky News.
Precise details of the exercise were not clear but is not believed to encompass formal restructuring work that could lead to store closures.
River Island still trades from more than 250 stores, according to its website.
For the year ended 30 December 2023 River Island posted pre-tax loss of £33.2m.
Alongside this, the company’s turnover during the year fell by more than 19% to £578.1m.
AlixPartners has also been hired to advise the discount retailer Poundland’s parent company, Pepco Group.
From 1 April businesses in the UK will be required to pay more in National Insurance contributions for employees.
Alongside this, the National Minimum Wage will increase to £12.21 per hour with efforts being made to bring the minimum wage for 18-21 year olds closer to that figure.
Retail Sector has approached River Island for comment.
