The fashion retailer previously revealed it wants to close 33 stores and reduce rents on a further 71 branches – but it needs the approval from creditors and landlords for this to go ahead
River Island is reportedly at risk of collapsing unless its rescue plan is approved in the High Court next week.
The fashion retailer previously revealed it wants to close 33 stores and reduce rents on a further 71 branches – but it needs the approval from creditors and landlords for this to go ahead.
According to The Telegraph, its formal restructuring plan states that River Island will effectively run out of money by the end of August and “would be subject to administration or other insolvency proceedings” if the proposals are not given the green light.
If the rescue plan goes ahead, then River Island will be able to access an emergency loan from its founders, the billionaire Lewis family, to pay its bills. The Mirror has contacted River Island for comment.
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It was previously revealed that River Island wants to cut rent by between 25% and 75% for 36 months at 38 stores, and reduce rent to zero at 24 other stores. Landlords for nine stores would receive full rent under the proposed plan.
A further 97 stores out of around 230 in the UK are not named in the restructuring plan at all, will not be impacted and also continue to pay full rent.
River Island has around 230 stores and employs around 5,500 people. The retailer, which fell to a £33.2million loss in 2023 after sales slid by 19%, has reportedly hired advisors from PwC in order to oversee the restructuring process.
A River Island spokesperson said: “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.”
Full list of River Island planned store closures
- 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
