River Island reportedly appoints financial advisors

Business

River Island Credits: River Island

British fashion chain River Island has reportedly hired financial advisers from global consultancy AlixPartners as the retailer looks to improve profits and cut costs, Sky News reports.

River Island has been struggling with declining financial results and rising costs over an extended period. In October 2024, the company posted a pre-tax loss of 32.2 million pounds, compared to a profit of 7.5 million pounds a year earlier. The retailer further reported a 15.1 percent drop in turnover to 701.5 million pounds. In addition, the company has 250 stores in the UK, which will face significant tax increases in April 2025 due to incoming changes to the government's Budget.

One bright spot is that River Island is seizing opportunities in e-commerce. In January 2019, River Island closed its stores in the Benelux, where, at the time, the fashion chain said in a statement to FashionUnited that it would continue with a business model focused on e-commerce. It commented: “Our online results continue to grow in the Benelux, but with high store costs, we are now changing to an e-commerce-leading model in the region.”

In its October 2024 financial report, the retailer stated that its investments in digital customer experiences are now starting to pay off and that it remains optimistic about the future despite the challenging market conditions.

FashionUnited has reached out to River Island for more information about a potential collaboration with AlixPartners.

This article originally appeared on FashionUnited.NL. It was translated to English using AI and edited by Rachel Douglass.

River Island