River Island’s Restructuring: Lessons for Retail Facing Insolvency

At Simple Liquidation, we see many well-known businesses reach a crossroads, a moment when decisive action is needed to protect jobs, preserve value, and prevent a full collapse. The recent restructuring of River Island is one such example.

The high street fashion retailer, famous for its trendy styles and long history, has just secured approval for a rescue plan that will save over 4,000 jobs. But the cost is significant: 33 stores will close immediately, more than 1,000 jobs remain at risk, and a further 70 sites may shut in the future.

While River Island will live to fight another day, the case carries important lessons for any retail business navigating the turbulent waters of UK high street trading.

River Island’s restructuring didn’t happen overnight. Like many high street brands, the company faced a sharp rise in the cost of doing business, from increased wages to soaring energy bills. Add to that the shift in consumer behaviour with more shoppers heading online and fewer visiting physical stores, and the cracks began to show.

By June 2025, the company was warning creditors it could run out of cash by the end of August without a rescue deal. Losses had mounted to £33.2 million in 2023, compared to a small profit the year before, and sales had dropped by nearly 20%.

The solution? A court-approved restructuring plan involving:

  • Closing 33 of its 230 stores immediately.
  • Cutting rent payments across the store portfolio.
  • Securing £40 million in funding from the founding Lewis family.
  • Lining up further transformation plans to align stores with customer needs.
  • The plan passed despite fewer than 75% of landlords backing it, a sign of how tough negotiations can be when multiple creditor groups have competing interests.


River Island’s Restructuring in the United Kingdom

Location: United Kingdom

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