River Island mulls CVA as coronavirus hammers sales
River Island is the latest fashion retailer to consider undertaking a company voluntary arrangement due to the effects of the coronavirus on sales and store footfall.
Retail Week understands that River Island is considering launching a CVA in a bid to close some of its stores and slash rents on others across its 300-strong estate.
A source with understanding of the retailer’s thinking said that while River Island executives were considering the process, there were concerns about winning enough support from creditors due to the retailer’s still relatively healthy financial position.
Under the 1986 Insolvency Act, the support of 75% of creditors is required to successfully undertake a CVA.
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