River Island, one of Britain’s best-known high street fashion retailers, has been handed a crucial lifeline after a High Court judge approved its sweeping restructuring plan on August 8, 2025. The decision paves the way for the closure of 33 stores across the UK, rent reductions—some to zero—on 71 additional outlets, and a determined bid to secure fresh funding to steady the company’s finances.
The court’s green light comes after months of mounting financial pressure that left River Island teetering on the brink of administration. According to The Independent, the company had warned in June that, without radical intervention, it could collapse “within weeks.” The urgency of the situation was underscored by the fact that only half of River Island’s creditors backed the plan at an August 1 meeting—well short of the three-quarters majority required for automatic approval. With no opposition appearing in court on August 8, the judge’s ruling became the decisive factor in the retailer’s fight for survival.
River Island employs around 6,250 people, with 5,000 working in stores. The restructuring plan is expected to save roughly 4,000 jobs, though more than 1,000 are now at risk as the company attempts to redeploy affected staff to other locations. Of the total workforce, 122 employees will remain “unaffected” by the changes. The closures will hit branches across the UK, including in London, Scotland, Northern Ireland, and Wales. Among the stores set to shut their doors is the Rochdale branch in Greater Manchester, as confirmed by Manchester Evening News.
The full list of outlets marked for closure reads like a roll call of British high streets: Aylesbury, Bangor Bloomfield, Barnstaple, Beckton, Brighton, Burton-Upon-Trent, Cumbernauld, Didcot, Edinburgh Princes Street, Falkirk, Gloucester, Great Yarmouth, Grimsby, Hanley, Hartlepool, Hereford, Kilmarnock, Kirkcaldy, Leeds Birstall Park, Lisburn, Northwich, Norwich, Oxford, Perth, Poole, Rochdale, St Helens, Stockton On Tees, Surrey Quays, Sutton Coldfield, Taunton, Workington, and Wrexham. While the company’s Irish stores remain unaffected, the impact across the UK is substantial.
To stabilize its balance sheet, River Island is seeking £54 million in new funding. A significant portion—£40 million—will come from Blue Coast Capital, the investment vehicle of the billionaire Lewis family, which has steered the company since its early days. Ben Lewis, River Island’s chief executive and the nephew of founder Bernard Lewis, expressed cautious optimism after the court’s decision. “We are pleased that River Island’s restructuring plan has been approved by the High Court,” he said. “We have a clear transformation strategy to ensure the long-term viability of the business, and this decision gives us a strong platform to deliver this. Recent improvements in our fashion offer and shopping experience are starting to show results, and the restructuring plan will enable us to align our store estate to our customers’ needs.”
The plan’s approval did not come without controversy. Landlords, already weary from a string of similar restructurings at other retailers—including Poundland, Hobbycraft, Quiz, and Claire’s—rejected River Island’s proposals at the creditor vote. Roger Hutton, a restructuring expert, told The Times, “What’s particularly concerning is that River Island’s plan was rejected by key landlords.” Matthew Padian, a lawyer at Stevens & Bolton, noted that landlords were “at the end of their tether,” pointing to a wider malaise on the high street as retailers continue to shift toward online sales and away from traditional brick-and-mortar outlets.
Michelle Quinn, a partner at landlord Grosvenor, reflected on the outcome with a sense of resignation. She described the rent cuts as “hefty” for some landlords and highlighted the dwindling appeal of physical retail among younger shoppers. “If landlords keep pricing high rates, it’s just not conducive to a thriving high street, unfortunately,” she observed. The growing lack of transparency between landlords and retailers is also a point of contention. Mark Bruce, data and insights director at Kinexio, argued that “complex insolvency measures such as CVAs and Restructuring Plans should not be needed to close underperforming stores.” Instead, he called for real-time analysis of sales data to support more flexible lease models, allowing rents to be adjusted in line with trading conditions.
Matthew Weaver KC, representing River Island in court, acknowledged the scale of the company’s challenges. As reported by The Independent, he told the judge, “The company simply has not been able to reverse” its financial difficulties, citing declining footfall and sales in a “highly competitive and changing retail environment as well as the prevailing trend away from high street retail stores to online shopping.” Weaver also warned of the possibility that some landlords might attempt to “extract value from the plan company by taking a ransom position.” Nonetheless, he insisted, “the transformation plan seeks to address the root causes of the difficulties facing the group and to reposition River Island for long-term success. It involves a combination of operational improvements, cost rationalisation and strategic investment, all of which are critical to restoring profitability, improving cash flow, and safeguarding jobs.”
The roots of River Island stretch back to 1948, when the Lewis family set up a fruit and vegetable stall in North London. The business soon pivoted to knitting wool and, by the 1970s, had entered the fashion world under the Chelsea Girl and Concept Man brands. These were merged in 1988 to form River Island, which has since become a fixture of British retail.
Yet, the pressures of recent years have been relentless. In 2023, River Island reported a pre-tax loss of about £32.2 million, with turnover plunging 19 percent. Early in 2025, the company brought in AlixPartners to advise on cost-saving strategies, resulting in job cuts in divisions such as buying and merchandising. By June, PwC was tasked with drawing up a formal restructuring plan, citing “the pressures of a highly competitive and changing retail environment combined with increased economic uncertainty” as core risks to the business.
The High Court’s approval, while a relief for River Island’s management and many of its employees, does not mean the end of uncertainty. Some experts, like Lucy Trott of Stevens & Bolton, warn that dissenting creditors could yet appeal the court’s decision, especially given the precedent it sets for “cramming down commercial landlords.” Others point out that if landlords decide to switch tenants in the wake of the restructuring, more closures could follow.
For now, River Island’s management is focused on executing its transformation plan and convincing both landlords and customers that the business can adapt and thrive in a retail landscape that looks very different from the one it dominated just a decade ago. The coming months will reveal whether this storied brand can navigate the turbulence of the modern high street and emerge stronger on the other side.
