River Island High Court Approves Restructuring, 33 Store Closures, Rent Cuts

River Island has received High Court approval for a restructuring plan intended to prevent the retailer from entering administration and to enable it to secure fresh funding later this year. The plan includes closing 33 UK stores, reducing rents on 71 others, and requesting some landlords to suspend payments entirely for up to three years, while none of the Irish stores will be affected. The company cited challenges such as declining footfall, a shift to online shopping, supply chain disruptions, and rising operational costs as factors behind its financial difficulties, with a projected funding shortfall exceeding £43 million. River Island is seeking £54 million in new funding to stabilize its finances and avoid insolvency, which would otherwise result in the sale of its stock, brand, and intellectual property. Around half of the creditor classes approved the plan in early August, and no objections were raised during the court hearing. The restructuring plan aims to address the root causes of River Island's difficulties through operational improvements, cost rationalization, and strategic investment.