Scores of popular stores are set to disappear from the UK high street in another blow to towns and cities across the country. Well-known brands such as Poundland, River Island and New Look are likely to close their doors to the public this August.
According to the reports, New Look and Poundland have announced the closure dates of their stores for the month of August, however, the fashion retailer brand, River Island, has warned about “running out of cash” in weeks which could lead a closure of 33 of its stores. The retailer has not set out any date as it is working on a rescue deal in the High Court.
New Look is set to close its branch in Neath, Wales, on August 6 following a string of 11 closures so far this year. The shopping brand warned that around 100 of its 364 stores across the country are on the brink of closure due to expiring leases and ongoing high operating costs.
Similarly, Poundland has announced that it will be closing 26 of its stores in August as part of a wider restructuring plan following its £1 sale to Gordon Brothers earlier this year.
Fashion retailer River Island is reportedly at risk of collapsing unless its rescue plan is approved in the High Court. It has announced plans to close 33 stores and negotiate lower rents on another 71 locations, but the move depends on gaining approval from both creditors and landlords.
According to The Telegraph, its formal restructuring plan states that River Island will effectively run out of money by the end of August and “would be subject to administration or other insolvency proceedings” if the proposals are not given the green light.
A River Island spokesperson had told Mirror Online: “River Island circulated its proposals for a Restructuring Plan to creditors on June 20th. In combination with the company’s ongoing Transformation Strategy, the Plan is a proactive measure to place the company on a firm footing.
“We have been having positive conversations with key stakeholders and are confident that we will achieve approval of the Plan in the next few weeks.”