River Island faces potential collapse unless the High Court approves its rescue plan next week. The fashion chain has previously announced its intention to shut 33 outlets and negotiate lower rents across 71 additional locations – though this requires backing from creditors and property owners to proceed.
The Telegraph reports that the company’s official restructuring proposal warns River Island will effectively exhaust its cash reserves by late August and “would be subject to administration or other insolvency proceedings” should the measures fail to secure approval.
Should the bailout strategy succeed, River Island would gain access to emergency funding from its founders, the wealthy Lewis family, enabling it to meet its financial obligations. The retailer is reportedly confronting a £10million shortfall in funding, reports the Mirror.
A River Island representative commented: “River Island circulated its proposals for a Restructuring Plan to creditors on June 20th. In combination with the company’s ongoing Transformation Strategy, the Plan is a proactive measure to place the company on a firm footing. We have been having positive conversations with key stakeholders and are confident that we will achieve approval of the Plan in the next few weeks.”
Earlier reports disclosed that River Island seeks to slash rental costs by between 25 per cent and 75 per cent across 36 months at 38 outlets, whilst eliminating rent entirely at 24 additional premises.
Property owners for nine locations would continue receiving complete rental payments under the suggested arrangement. A total of 97 stores out of approximately 230 in the UK are not mentioned in the restructuring plan and will continue to operate as usual, paying full rent.
River Island, which operates around 230 stores and employs roughly 5,500 people, suffered a £33.2million loss in 2023 after sales dropped by 19 per cent. The retailer has reportedly enlisted advisors from PwC to oversee the restructuring process.
Ben Lewis, chief executive of River Island, previously stated: “River Island is a much-loved retailer, with a decades-long history on the British high street. However, the well-documented migration of shoppers from the high street to online has left the business with a large portfolio of stores that is no longer aligned to our customers’ needs.”
He added: “The sharp rise in the cost of doing business over the last few years has only added to the financial burden. We have a clear strategy to transform the business to ensure its long-term viability.”
Lewis continued: “Recent improvements in our fashion offer and in-store shopping experience are already showing very positive results, but it is only with a restructuring plan that we will be able to see this strategy through and secure River Island’s future as a profitable retail business. We regret any job losses as a result of store closures, and we will try to keep these to a minimum.”
Full list of River Island planned store closures
It was previously reported that the following stores would close by January 2026 if the rescue plan is approved:
- Beckton
- Bangor Bloomfield
- Wrexham
- Edinburgh Princes Street
- Hereford
- Surrey Quays
- Didcot
- Sutton Coldfield
- Aylesbury
- Burton-Upon-Trent
- Northwich
- Taunton
- Workington
- Falkirk
- Cumbernauld
- Kirkcaldy
- Gloucester
- Hartlepool
- Brighton
- Lisburn
- Norwich
- Oxford
- Poole
- Kilmarnock
- Hanley
- Barnstaple
- Grimsby
- Leeds Birstall Park
- Rochdale
- Great Yarmouth
- St Helens
- Stockton On Tees
- Perth
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