River Island to cut 350 in-store staff

River Island is planning to cut 350 store management and senior sales roles, as part of ongoing restructuring plans.

This follows the announcement last month of 250 head office redundancies, as a cost-cutting measure driven by the Coronavirus hitting sales and footfall.

The fashion retailer stated that the latest restructure would allow it to simplify its store management structures and better deliver its omnichannel strategy.

Chief executive Will Kernan explained: “Whilst this is an incredibly difficult decision, these actions are crucial to ensure that our stores continue to effectively play their hugely important role in our omnichannel future.

“By making these changes, we will create a flatter management structure with a greater emphasis on customer service and a seamless experience whether online or in-store.”

Last week, news emerged that the retailer was mulling a Company Voluntary Arrangement (CVA) to help close some of its stores and cut rents on others.

However, executives have expressed concerns that creditors would not approve a CVA, given River Island's relatively financially stable position. At least 75 per cent of creditors must approve for a company to successfully undertake a CVA, according to the Insolvency Act.

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