River Island has been saved from collapsing into administration.
Its restructuring plan has been approved by a High Court judge today as the clothing brand tries to save the business after suffering heavy financial losses.
As part of the plans, 33 of its 223 branches across the UK are set to close by January 2026.
It made a £33.2million loss in 2023 after sales dropped by 19%, according to River Island’s most recent set of accounts.
Ben Lewis, River Island CEO, said: ‘We are pleased that River Island’s restructuring plan has been approved by the High Court.
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‘We have a clear transformation strategy to ensure the long-term viability of the business, and this decision gives us a strong platform to deliver this.
‘Recent improvements in our fashion offer and shopping experience are starting to show results, and the restructuring plan will enable us to align our store estate to our customers’ needs.
‘We are grateful to our suppliers, landlords and other stakeholders for their constructive engagement and shared confidence in River Island’s future.’
River Island is hoping to secure more funding later this year to avoid falling into millions of pounds’ worth of debt.
Its restructure plan will see 33 shops closed and rents reduced at 71 of its other branches.
Landlords are being asked to cut rents for three years and potentially stop payments completely on some sites in a bid to stem losses.
Michelle Quinn, partner at Grosvenor Law, told Metro: ‘As expected, the High Court in London has sanctioned the River Island restructuring plan over the objections of the landlords.
‘The landlords faced an uphill battle in court, and the alternative was likely to be an insolvent administration with the company rumoured to run out of cash at the end of the month.
‘Absent any successful appeal, the landlords will now be subject to what is called a “cross-class cram down” meaning that the restructuring plan will be imposed on them despite their objections.
‘One hopes that the restructuring plan works, to ensure that a staple of the High Street remains for years to come.’
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