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, significant reductions in rent, and a need for at least £10 million in funding by September.
In documents detailing the plan—first unveiled in June—the high street 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 as they fall due. A vote on the proposals and a court hearing are expected next month.
Without landlord support, River Island said it would no longer be able to continue as a going concern and would be forced to enter administration or other insolvency proceedings.
The company blamed its deteriorating finances on “a sharp rise in the cost of doing business” and the ongoing shift toward online shopping, which has left its existing store estate misaligned with customer behaviour.
The high street staple, which trades from over 200 stores, has been battling a challenging retail environment despite a brief recovery in spring trading, helped by warmer weather. The uptick followed a difficult 2024 and early 2025, as UK households cut back on fashion spending to prioritise essentials such as food and energy bills.
River Island reported a £33.2 million loss in 2023, reversing a modest £2 million profit in 2022. Sales fell 19% to £578.1 million, according to the company’s latest filings at Companies House.
The restructuring plan includes £40 million in new funding from the Lewis family’s investment vehicle, which continues to control the business. In addition, River Island’s largest lender, Blue Coast Capital, has agreed to waive interest payments temporarily and extend the maturity date on £270 million in outstanding loans from 2027 to 2028.
A spokesperson for River Island said that discussions with stakeholders had been “positive” and that the company was “confident that we will achieve approval of the plan in the next few weeks.”
In January, the retailer implemented a cost-cutting programme, including redundancies at its London head office, affecting departments such as buying and merchandising.
River Island, which began trading as Lewis’s in the 1940s and later as Chelsea Girl, is the latest in a string of high street retailers to struggle with rising costs, falling footfall, and consumer belt-tightening. The company has long been a staple of UK high streets and shopping centres, targeting younger fashion-conscious consumers.
The retailer’s plight echoes that of Poundland, which recently announced its own restructuring plan. That proposal could result in the closure of up to 150 stores, the shuttering of two distribution centres, and the end of online operations, placing 2,000 jobs at risk.
If River Island fails to secure creditor support, it risks becoming the latest casualty of a retail sector under sustained pressure. Its possible collapse would send shockwaves through Britain’s fashion industry and retail employment landscape — and further accelerate the decline of the physical high street in the post-pandemic era.
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River Island faces collapse unless landlords approve urgent rescue plan