**River Island Races Against Time to Secure Lifeline and Avoid Administration, With Dozens of Stores Set for Closure**
High street fashion retailer River Island is facing a pivotal moment as it seeks to stave off collapse with a final deadline looming for a vital rescue package. The popular chain, which has been a fixture on British shopping streets for decades, is battling to restructure its business to prevent financial ruin and has outlined plans to close a significant portion of its branches as part of its recovery strategy.
In legal proceedings at the High Court, it was revealed that River Island will exhaust its available funds by the end of August unless a restructuring plan is agreed and implemented. Failure to secure this deal would likely propel the retailer into administration or insolvency, risking thousands of jobs and the closure of dozens of shops.
River Island has proposed shutting 33 loss-making stores, with an additional 97 outlets also at risk should the company fail to turn its fortunes around. The rescue blueprint, due for further scrutiny in court next week, includes efforts to negotiate reduced rents for 71 outlets in the hope of improving the chain’s financial position and chances of long-term viability.
If the plan is approved, River Island will be able to access a lifeline loan from the founding Lewis family, whose fortune has historically underpinned the business. The company currently faces a shortfall of £10 million, and additional support from creditors is being sought to avoid a severe funding crisis.
Representing the hold company, River Island Holdings (RIH), legal counsel Matthew Weaver KC described the retailer’s position as the result of “disastrous few years”. He argued that the proposed restructuring plan amounts to a genuine rescue, pointing to projected deficits of more than £50 million for the group in both 2026 and 2027 if action is not taken.
During the hearing, it was made clear that without agreement, the “most likely scenario” would see River Island sold off for its stock, brand and intellectual property in order to satisfy creditors. In an effort to avert that scenario, Mr Justice Thompsell has ruled that the company can now put its plan to a creditor vote, due next month. If the proposal secures approval, it will return to the High Court for a final sign-off.
River Island employs approximately 5,500 people across the UK and Ireland. Its history dates back to 1948, when it was established as Lewis and Chelsea Girl, before adopting the River Island name in the mid-1980s. At present, the company operates 223 stores, though many have reported declining sales in recent years, pressured by what management called an “increasingly challenging and competitive” retail environment.
Weaver explained that as well as mounting competition from other chains and the accelerating shift towards online shopping, River Island has been badly affected by wider economic problems. “A number of geopolitical events have also resulted in continuing supply chain disruption which, together with energy, labour and other price increases, has resulted in a cost base that’s too high and unsustainable at its current level,” he said.
The firm has also revealed the full list of stores planned for closure, with branches in cities and towns across the UK and Ireland—including Wrexham, Edinburgh Princes Street, Brighton, Hereford, Hanley, and Bristol—set to shut their doors by January 2026 if the strategy is given the green light. Beyond these, another 71 shops have been identified as under-performing and may also face closure if financial targets are not met.
As the retail sector continues to face immense pressure from changing consumer habits and economic upheaval, the case of River Island strikes a familiar chord. How this famed high street brand navigates the coming months may well offer broader lessons for other retailers battling similar headwinds.
Despite the uncertainty, the rescue effort remains in motion, with all eyes now on creditors’ next steps and the High Court’s final decision. For River Island’s thousands of employees and dedicated customers, the hope is that this intervention will be enough to keep the lights on and preserve both jobs and cherished local stores.