River Island allows shops to close - muhammadhussainadnan.shop

Rachel Calloon

Business Reporter, BBC News

Getty Image a River Island Shop Front, with Red

River Island has been given a green light to close 33 stores in the UK after the High Court approved the reorganization plans of the fashion retailer.

The High Street Brand said that a customer change towards online shopping and high operating costs has contributed to the loss of multi-million pounds.

It warned its creditors that it could be less than cash by the end of August if its turnaround proposal was not approved.

Along with closing the shops, River Island CEO Ben Lewis said, “River Island Chief Executive Officer Ben Lewis said,” We will be able to align our store estate for the needs of our customers “.

The conversation is scheduled to begin soon with those landlords.

Also, the closure and fare cut of the store, about 950 of the 950 roles in the main office of River Island will be made fruitless, saving the estimated £ 8.1m.

River Island has 223 stores in the UK and Ireland. None of the Irish shops is closed.

The retailer has already closed seven damage shops this year, River Island’s Barrister Matthew Weaver Casey told the High Court.

He said that the option was bankrupt until the reorganization was approved.

Mr. Lewis said that the company has a “clear change strategy” to ensure that the future of the business is, “and this decision gives us a strong platform to give it”.

Charles Alan, an intelligence analyst from Bloomberg, said the River Island had failed to live with the taste of the customer, stating that “a bit fickle” but the retailer found himself without “any striking”.

River Island was also suffering from issues felt by many UK retailers, such as changes in online shopping.

Mr. Alan told the BBC Today program, “Just less business is going on in shops.” He said that increasing costs have also increased due to increase in employer national insurance contribution.

‘Great shrinking’

The company employs around 5,500 people and was established in 1948 under Lewis and Chelsea Girls.

Mr. Weaver said that it was re -developed and increased continuously as River Island in 1988, but in recent years, there was a decline in sales.

The company’s most recent accounts lost £ 33.2m after 19%of the sale of 19%.

Mr. Weaver also said that River Island had estimated to be unable to pay his debt from late August or early September, with an estimated reduction of more than £ 43m.

The company is demanding £ 54M in funding. Mr. Weaver told the Friday hearing that the company is “not only able to reversed the trend of financial difficulty”.

Nick Sherard, Managing Director of Consultancy Label Sessions, said that while the company has been saved from collapse for now, marketing and creative teams need to work to get consumers to take care of their products.

“People keep repeating the line that River Island is a very liked brand. It is not really no longer now.

“River Island is a very interesting brand and, while it is important, it’s not the same thing at all,” he said. “Does anyone have a vision for what to do after the cost cut?

“There are very few examples of companies shrinking in greatness.”

Reorganization will involve closing 33 stores from January 2026, and in some cases in some cases it will be zero to interact with the landlords of another 71 store to reduce the rent.

Mr. Weaver admits that in some cases, zamindars may prefer to secure shop space before the termination of leases.

With restructuring, the company is estimating 1% annual growth for the next five years.