River Island allowed to shut shops to stave off collapse

River Island, the Supreme Court of fashion retailer’s restructuring plans after confirming the restructuring plans to close 33 stores throughout England was given green light.

The High Street brand said that a customer’s transition to online shopping and higher operating costs contribute to millions of pounds of losses.

If the return proposal was not approved, he warned his creditors that he could be stuck in cash until the end of August.

In addition to the shops, the rents, River Island’s General Manager Ben Lewis, “Our store property will allow us to align our customers’ needs”, he said.

Negotiations are expected to start with these landlords in a short time.

In addition to store closures and rent discounts, approximately 950 roles in River Island’s head office will be made unnecessary and the estimated £ 8.1 million will save an estimated role.

River Island has 223 stores in England and Ireland. None of the Irish shops are closing.

River Island’s lawyer Matthew Weaver KC told the Supreme Court, the retailer has already closed seven losses this year.

He said that the alternative is bankruptcy unless the restructuring was approved.

Mr. Lewis said that the company has a “open transformation strategy” to ensure that the business has a future, and this decision gives us a strong platform to offer us this. “

Charles Allen, an intelligence analyst in Bloomberg, said River Island could “be a little unstable”, but the retailer found himself without “stunning”.

River Island suffered from problems felt by many British retailer, such as transition to online shopping.

“There is less work in stores,” he said. Authorized, increasing costs, employer’s national insurance contributions to the increase in the worse, he added.

The company employs about 5,500 people and was founded in 1948 under Lewis and Chelsea Girl brand.

Weaver was re -branded as River Island in 1988 and grew steadily, but said that sales have decreased in recent years.

The company’s latest accounts fell by 19%of the full year loss of £ 33.2 million after sale.

Mr. Weaver also said that River Island could not pay his debts from the end of August or the beginning of September, and there was a deficiency of more than £ 43 million with a deficient deficiency.

The company wants financing 54 million pounds. Mr. Weaver said he could not “reversal the company’s financial difficulty tendency at the Friday’s hearing.

Nick Sherrard, General Manager of Consulting Label Sessions, said that although the company has been rescued from the collapse of the company for now, marketing and creative teams should go to work to ensure that consumers care about their products.

“People continue to repeat the line that River Island is a very popular brand. Not really.

“River Island is a well -known brand, and even though it’s important, it’s not the same,” he said. “Does someone have a vision about what to do after the cost of cost?

“There are very few examples of companies that turn into size.”

Restructuring will include the closure of 33 stores as of January 2026 and in some cases negotiation of 71 stores with landlords to reduce rents.

In some cases, Mr. Weaver acknowledges that landlords may prefer to regain the shop area before the end of the rental.

With the restructuring, the company predicts 1% growth annually for the next five years.

River Island will close:

• Aylesbury
• Bangor Bloomfield
• Barn
• Beckton
• Brighton
• Burton-Up-Trent
• Pickle
• Didcot
• Edinburgh Princes Street
• Falkirk
• Gloucester
• Great Yarmouth
• GRIMSBY
• Hanley
• Hartlepool
• Hereford
• Kilmarnock
• Kirkcaldy
• Leeds Birstall Park
• Lisburn
• North
• Norwich
• Oxford
• Perth
• Pool
• Rochdale
• ST HELENS
• Stockton on Tees
• Surrey quays
• Sutton Coldfield
• Taunton
• Workington
• Wrexham