River Island, the privately owned fashion retailer, is preparing to exercise tighter control over its cost base as the general public faces the prospect of big tax hikes in April.
Sky News understands that River Island, which is owned by the Lewis family, has brought in AlixPartners to work on a cost-cutting and profit-improving exercise for the chain.
Precise details of the scale of the work were unclear Tuesday, although it does not appear to encompass formal restructuring work that would result in store closures.
Money blog: Trump’s cryptocurrency collapses as critics call it worthless
River Island, which was previously called Lewis and Chelsea Girl, still sells to more than 250 stores, according to its website.
Retailers of all sizes have complained about the potential impact of upcoming increases in employers’ social insurance rates, with the sector as a whole facing a loss of billions of euros.
River Island Clothing Co’s accounts for the 52 weeks ended December 30, 2023 show the company made a pre-tax loss of £33.2 million.
Turnover during the year fell by more than 19% to £578.1 million.
Company executives said that while the business environment over the next year had been “challenging,” they remained “positive” about the outlook.
River Island did not respond to emailed requests for comment regarding the start of a cost-cutting exercise at the company.
AlixPartners, which was also hired to advise discount retailer Poundland’s parent company Pepco Group, declined to comment.