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River Island restructures, closes stores
A court-approved rescue plan will shutter 33 River Island stores and cut rents on 71 more to avoid administration and stabilise debt.
River Island wins court approval for its restructuring plan, but it will shutter 33 stores and cut rents on many more, risking hundreds of jobs.
River Island closes 33 stores after court approves rescue plan
River Island said it will shut 33 stores and reduce rents on 71 others as part of a restructuring plan approved by the High Court. The move is intended to prevent administration and to reduce debt, as the retailer contends with lower footfall, higher costs and a shift toward online shopping. The company has secured funding to support the plan, and landlords are being asked to agree to three years of rent relief or suspended payments on some sites. Five of the ten creditor classes backed the rescue plan, clearing the way for the court to sign off.
CEO Ben Lewis said the plan includes a clear transformation strategy to align the store estate with customer needs and to improve cash flow. He noted that recent improvements in the fashion offer and shopping experience are starting to show results. River Island employs around 5,500 people and operates 223 stores in the UK and Ireland, with none of the Irish stores facing closures.
Key Takeaways
"We have a clear transformation strategy to ensure the long-term viability of the business"
CEO Ben Lewis describing the plan's purpose
"Recent improvements in our fashion offer and shopping experience are starting to show results"
Lewis on early signs of progress
"We are grateful to our suppliers, landlords and other stakeholders for their constructive engagement and shared confidence in River Island's future"
CEO thanking partners
The move highlights the pressure on UK high streets as online shopping grows and costs rise. Restructuring can preserve a brand, but it must balance financial fixes with social impact, or risk eroding trust among workers and local communities. The plan’s emphasis on cost rationalisation and store realignment may set a template for similar efforts, yet it also raises questions about how robust regional economies can be when stores vanish from the high street.
Ultimately, the test is execution. If River Island can steadily improve profitability while protecting workers and suppliers, the rescue could stabilize a fragile retail ecosystem. If not, the episode may fuel further backlash against large retailers and prompt tighter scrutiny from lenders and local authorities.
Highlights
- Rescue plans must protect people as well as profits
- Transformation means more than numbers on a page
- The high street needs plans that keep workers in their towns
- Profit fixes alone rarely save communities
Job losses and store closures risk social and economic impact
The closures affect hundreds of workers and could hit local economies where stores are a key employer. The plan relies on landlord concessions, which may face pushback. Public reaction and political scrutiny could rise as communities feel the loss of high street jobs.
The path forward will test whether a careful balance of rescue and responsibility can preserve the high street, not just rescue a brand.
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