The future of UK high street favourite River Island has been decided. A rescue plan was given the green light by High Court judges today, sealing the fate of 33 stores earmarked for closure.
It was previously revealed that the ailing fashion retailer would have run out of cash by September, so a drastic rescue strategy designed to salvage the brand was drawn up. That plan has now been approved by the British courts, meaning 33 stores shutting their doors in January 2026, while rents at 71 locations will be reduced and a series of debts will be written off.
During the extensive hearing, it was confirmed that River Island employs 6,250 staff members, with more than 5,000 of these being store employees, and that 122 stores will remain “unaffected” by the plan.
To get the go-ahead, three quarters of the company’s creditors needed to support it, along with the founder’s – the Lewis family – agreement to provide an emergency loan. Despite outright rejection of the proposal by several landlords, it has now passed, meaning the brand has sidestepped total liquidation.
During the High Court hearing, it was revealed how online shopping and decreased store footfall have played a significant role in the brand’s recent struggles, reports the Daily Star.
River Island’s financial woes are the result of multiple issues converging simultaneously. One of the most significant problems is the transformation in our shopping habits.
Increasingly, consumers are purchasing garments through digital channels, yet River Island continues to maintain numerous costly brick-and-mortar outlets that fail to generate sufficient revenue to warrant their overheads.
Compounding this challenge is the meteoric rise of ultra-rapid fashion retailers such as Shein and Temu, which can produce fresh designs at remarkably competitive prices, presenting formidable competition for established high-street retailers.
River Island’s chief executive Ben Lewis has openly acknowledged the company’s difficulties, stating: “The well-documented migration of shoppers from the high street to online has left the business with a large portfolio of stores that is no longer aligned to our customers’ needs.
“The sharp rise in the cost of doing business over the last few years has only added to the financial burden.”
Beyond these factors, consumers are grappling with reduced disposable income, whilst businesses face increased taxation following Labour’s electoral victory last year.
Nevertheless, River Island’s trajectory remains uncertain… though precisely how much time remains is yet to be determined.