Iceland reviews management structure but slams job loss claims

The frozen food specialist admitted that the review had “recently begun”, with a formal consultation process expected to be launched within weeks.

However, a spokesman for the retailer said reports that hundreds of roles could be made redundant were “categorically untrue”.

Iceland’s grocery rivals Asda, Sainsbury’s and Morrisons have all revealed restructuring plans since the turn of the year as food retailers grapple with rising property costs, the shift to online shopping and the relentless rise of discount duo Aldi and Lidl.

Iceland, which has ploughed cash into the rapid expansion of its new format The Food Warehouse over the past three years, is also grappling with a £736m debt pile.

Unlike Morrisons – which Retail Week revealed is preparing to axe 3,000 department management roles in its stores – Iceland said shopfloor staff will not be impacted by its review.

An Iceland spokesman said: “Iceland Foods has no plans for major reductions in its UK workforce of more than 25,000 people, and absolutely no plans to reduce the number of staff employed in its stores.

“Like every other retailer, we regularly review our management structure to ensure that we are running our business as efficiently and economically as possible. Such a review has recently begun, but it is an ongoing process and no decisions have yet been taken as a result of it.”

Analysts have recently voiced concerns about Iceland’s ability to repay its debts, with ratings agency Moody’s downgrading them.

The chain has already repaid more than £120m of bond debt. It has also paid £5m of another £45m that is due to expire in July.

Two other tranches of bonds – of £200m and £550m – have traded higher in recent months, suggesting investors are confident they will get their money back.