River Island has warned of a potential collapse by summer's end unless a restructuring plan is approved. This plan requires the closure of 33 stores and significant rent reductions, along with a need for at least £10 million in funding. Waiting for a vote and court hearing next month, River Island reported a £33.2 million loss in 2023, attributing financial struggles to rising costs and shifting consumer habits. The current situation may push the company into insolvency without stakeholder support and approvals for funding and restructuring efforts.
River Island has warned that it could collapse by the end of the summer unless landlords approve a proposed restructuring plan that would see the closure of 33 stores.
The fashion retailer told creditors that unless the proposals are passed, it may run out of cash by the end of August, rendering it unable to pay its debts.
The company blamed its deteriorating finances on a sharp rise in the cost of doing business and the ongoing shift toward online shopping.
River Island reported a £33.2 million loss in 2023, reversing a modest £2 million profit in 2022 and sales fell 19% to £578.1 million.
Collection
[
|
...
]