River Island becomes the latest retailer to eye up a Company Voluntary Arrangement (CVA) or an alternative form of administration as Covid-19 impacts its trading.
It is reported by Retail Week, that the fashion retailer is looking to close some of its 300+ stores, whilst cutting rents on others. Executives share concern as to if the 75 per cent of creditors needed, would approve the CVA proposal or not, being that the firm has a healthy position in the market.
So far, River Island has taken action to make 250 of its head office staff redundant, in a cost-cutting measure brought on from the pandemic which caused a fall in sales and footfall. The majority of staff have also been furloughed whilst in lockdown.