River Island’s owners are reportedly drawing up a radical rescue plan that could put several stores and jobs at risk in what would be another major blow to the UK high street.

The popular retailer – one of Britain’s best-known clothing chains – operates around 230 stores across the country, employing some 5,500 people. But Sky News is reporting its owners have drafted in advisers from PricewaterhouseCoopers (PwC) to devise a formal restructuring plan. The proposals are subject to sign-off and could be finalised in the coming weeks, with sources insisting any definite decision’s over River Island’s future have yet to be taken.

In the most recent filings to Companies House, River Island Holdings Limited said fashion retail was a “fast changing” market with “increasing competition especially in the digital space”.

River Island have announced new plans (Image: Getty )

The filing continued: “The key business risks for the group are the pressures of a highly competitive and changing retail environment combined with increased economic uncertainty.

“A number of geopolitical events have resulted in continuing supply chain disruption as well as energy, labour and food price increases, driving inflation and interest rates higher and resulting in weaker disposable income and lower consumer confidence.”

Express.co.uk have contacted River Island for comment.

Sky News reported earlier this year that River Island had engaged the cosulting firm, AlixPartners, to look at cost reductions and profit improvement, but it’s understood PwC are now in the role.

Traditional high street fashion retailers have faced tough competition from online clothing brands which have swamped the UK market in recent years, as well as a lag from decreased footfall caused by the Covid pandemic.

Many firms have also complained about the hikes to employer National Insurance contributions announced by Chancellor Rachel Reeves in her October Budget.

Popular brands like Lakeland and the Original Factory Shop have since announced they are seeking new owners, and discount store Poundland said it was closing two branches in Bristol and Flint later this month, with 200 more stores still believed to be at risk as the company looks for a buyer.