River Island High Court-Approved Plan Closes 33 UK Stores Risks Hundreds of Jobs

River Island, a major UK high street fashion chain, has received High Court approval for a restructuring plan that will see the closure of 33 stores and reduced rents on 71 others to prevent the company from collapsing into administration. The company has faced a 19% sales drop and a £33.2 million loss in 2023, citing challenges such as declining footfall, increased competition from online shopping, supply chain disruptions, and rising operational costs. The restructuring plan, advised by PwC and supported by five of River Island's ten creditor classes, aims to secure £54 million in funding to stabilize the business and manage debts, including substantial amounts owed to landlords like British Land and Frasers Group. River Island employs around 5,500 people, and the store closures put hundreds of jobs at risk, though no store closures in Ireland are planned. The company’s CEO, Ben Lewis, expressed optimism about the restructuring plan's approval and emphasized a clear transformation strategy going forward. If the plan had not been sanctioned, River Island was forecasted to enter insolvency, potentially leading to the sale of its stock, brand, and intellectual property.