River Island has successfully secured High Court approval for its restructuring plan, providing a crucial lifeline for the embattled chain as it works to transform its business model.
The court’s sanction of the plan comes after a period of uncertainty, with the original hearing delayed from Thursday due to judge availability issues.
The approval represents a significant victory for the fashion retailer, which had been awaiting the court’s decision on proposals that will reshape its store portfolio and financial obligations.
Following the decision, River Island chief executive Ben Lewis said: “We are pleased that River Island’s restructuring plan has been approved by the High Court. We have a clear transformation strategy to ensure the long-term viability of the business, and this decision gives us a strong platform to deliver this.
“Recent improvements in our fashion offer and shopping experience are starting to show results, and the restructuring plan will enable us to align our store estate to our customers’ needs. We are grateful to our suppliers, landlords and other stakeholders for their constructive engagement and shared confidence in River Island’s future.”
The restructuring plan involves closing 33 stores across the retailer’s estate, negotiating reduced rents on a further 71 locations and writing off existing debts.
The measures are designed to align River Island’s physical presence with changing customer shopping patterns and improve the company’s financial position.
The result follows news first reported by Retail Week that the retailer had failed to secure backing from many of its landlords in a crucial vote earlier this month.
Despite individual landlord classes not reaching the required 75% approval threshold due to the vote’s structure, River Island maintained confidence in the overall proposal after securing support from 80% of creditors.
The retailer has been working on the proposals since June, when it first circulated the restructuring plan to creditors. A company spokesman previously described the plan as “a proactive measure to place the company on a firm footing” in combination with ongoing transformation efforts.
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