Concerns about a possible River Island collapse are increasing as the fashion chain plans to close 33 stores across the UK. Locations in major cities such as Oxford, Edinburgh, Brighton, and Leeds are among those set to shut their doors.
The closures are part of a wider strategy to save the company from running out of money. River Island faces a financial crunch and may run out of funds by August if urgent cost-cutting plans are not approved. These include closing stores and cutting rents on 71 additional branches.
The retailer confirmed that the 33 stores will close in January, but its online store, riverisland.com, will continue operating. The company is also seeking to reduce debts, including those owed to landlords, in an effort to stay afloat.
According to a formal restructuring plan by PwC, the company’s advisors, River Island could face insolvency or administration if the plan is not accepted. The plan aims to stabilize the business and ensure it can continue trading.
A spokesperson said, “River Island circulated its proposals for a Restructuring Plan to creditors on June 20th. This plan, combined with the company’s Transformation Strategy, is a proactive step to put the company on solid ground.”
They added that positive talks with key stakeholders are underway and they are hopeful the plan will be approved soon. The company is working hard to prevent a full collapse and protect its brand and employees.
The possible River Island collapse highlights the challenges many high street retailers face as customers increasingly shop online. The company hopes these changes will allow it to adapt and survive in a tough retail market.
As River Island moves forward with these tough decisions, customers and employees watch closely to see what the future holds for the iconic brand.For a different kind of loss, read about the confirmed passing of celebrity chef Anne Burrell: Medical Report Confirms Anne Burrell Died by Suicide
