River Island at risk of collapse if landlords fail to back restructuring plan | Retail industry

River Island said he could collapse unless he reclaimed a restructuring plan, which includes the closure of 33 stores and a sharp reduction in rent payments.

In the documents that summarize the new details of the plan announced in the first June, Hight Street Moda Retailer said that until the second week of September, the funds need £ 10 million. He warned that this figure could rise to £ 50 million by the end of the year.

If the plan to reduce rents has not been approved, the company said that the company may be insufficient until the end of August and kaynıyılmış when it comes to the end of August, through a vote and a court hearing next month.

As a result, River Island said, ıyla He will not be able to continue trade as an ongoing concern ”and“ will be subject to management or other bankruptcy transactions ”. telegram.

Moda Retailer, “a sharp increase in the cost of doing business for the last few years” and “a large store portfolio that does not comply with the needs of our customers” has accused the online shopping problems.

Their problems come despite a strong spring for fashion retailers that warm weather conditions help. This was followed by a difficult 2024 and began to 2025, while households, including energy bills and foods, including a increase in the price of the foundations were lined up in expenditures, including clothes, including clothes.

The company said that the Lewis family, who founded River Island and still controls the business, has a new financing of 40 million pounds from the investment tool.

River Island spokesman added his plans to the creditor a month ago and added: iz We are sure that we will get the approval of the plan in the next few weeks. ”

Blue Coast Capital is the largest lending of River Island, according to restructuring documents. An interest rate agreed to issue a payment holiday and the date of reimbursement over 2027 to 2028 as part of the company’s survival struggle.

River Island, according to the latest accounts opened at Companies House, fell more than 19% after sale. In 2022, he made a profit of £ 2 million.

In January, the Group launched an effort to reduce a cost, including a surplus program that influenced departments such as purchasing and merchandising at the London head office.

River Island, known as Chelsea Girl, began to sell clothes under the name of Lewis in the 1940s.

The budget chain Poundland launched a similar restructuring program to 150 stores to close two distribution centers and end the online sales and risk 2,000 jobs.