River Island 'on brink of collapse' in weeks as 33 stores at risk of closure

River Island is reportedly at risk of collapsing unless its rescue plan is approved in the High Court next week.

The fashion retailer previously revealed it wants to close 33 stores and reduce rents on a further 71 branches - but it needs the approval from creditors and landlords for this to go ahead.

According to The Telegraph, its formal restructuring plan states that River Island will effectively run out of money by the end of August and "would be subject to administration or other insolvency proceedings" if the proposals are not given the green light.

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If the rescue plan goes ahead, then River Island will be able to access an emergency loan from its founders, the billionaire Lewis family, to pay its bills. River Island is said to be facing a £10million funding gap.

A River Island spokesperson said: "River Island circulated its proposals for a Restructuring Plan to creditors on June 20th. In combination with the company’s ongoing Transformation Strategy, the Plan is a proactive measure to place the company on a firm footing.

"We have been having positive conversations with key stakeholders and are confident that we will achieve approval of the Plan in the next few weeks."

It was previously revealed that River Island wants to cut rent by between 25% and 75% for 36 months at 38 stores, and reduce rent to zero at 24 other stores. Landlords for nine stores would receive full rent under the proposed plan.

A further 97 stores out of around 230 in the UK are not named in the restructuring plan at all, will not be impacted and also continue to pay full rent.

River Island has around 230 stores and employs around 5,500 people. The retailer, which fell to a £33.2million loss in 2023 after sales slid by 19%, has reportedly hired advisors from PwC in order to oversee the restructuring process.

Ben Lewis, chief executive of River Island, previously said: “River Island is a much-loved retailer, with a decades-long history on the British high street.

“However, the well-documented migration of shoppers from the high street to online has left the business with a large portfolio of stores that is no longer aligned to our customers’ needs.

“The sharp rise in the cost of doing business over the last few years has only added to the financial burden. We have a clear strategy to transform the business to ensure its long-term viability.

“Recent improvements in our fashion offer and in-store shopping experience are already showing very positive results, but it is only with a restructuring plan that we will be able to see this strategy through and secure River Island’s future as a profitable retail business.

“We regret any job losses as a result of store closures, and we will try to keep these to a minimum.”

Full list of River Island planned store closures

It was previously reported that the following stores would close by January 2026 if the rescue plan is approved.

• Beckton
• Bangor Bloomfield
• Wrexham
• Edinburgh Princes Street
• Hereford
• Surrey Quays
• Didcot
• Sutton Coldfield
• Aylesbury
• Burton-Upon-Trent
• Northwich
• Taunton
• Workington
• Falkirk
• Cumbernauld
• Kirkcaldy
• Gloucester
• Hartlepool
• Brighton
• Lisburn
• Norwich
• Oxford
• Poole
• Kilmarnock
• Hanley
• Barnstaple
• Grimsby
• Leeds Birstall Park
• Rochdale
• Great Yarmouth
• St Helens
• Stockton On Tees
• Perth