River Island’s fate is set to be decided on Friday as disgruntled landlords threaten to vote down its restructuring plans — leaving a High Court ruling as the brand’s last hope of survival.
Multiple sources close to the process told Retail Week the vote is expected to go down to the wire, with several major creditors preparing to oppose the proposals.
The embattled fashion chain, which has warned it could collapse within weeks without support, is seeking approval to shutter 33 stores, cut rents on a further 71 and write off debts as part of a rescue plan aimed at securing its future.
To get the green light, the retailer needs backing from 75% of its predominantly landlord-based creditors.
“It’s quite a drastic set of rent cuts and store closures,” one retail property insider told Retail Week.
“On that basis, I’m expecting quite a few landlords to vote against it. Particularly those affected by rent reductions.”
The source noted that some stores are moving to zero rent, adding: “That’s a big blow – especially in locations where River Island previously paid a reasonable rent. I imagine there will definitely be dissent, and the vote will be quite divided.”
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Another property source said the retailer had already shifted many of its leases to turnover-based rents during its first restructuring proposal in 2024.
“If the turnover hasn’t significantly changed in that time, then why are the same terms they agreed 12 months ago now unsustainable?” they said.
“From a landlord’s perspective, that’s hard to accept. Many feel River Island is a business trying to take advantage of the situation.”
If the vote fails, River Island will look to a so-called “cram-down” ruling, where the High Court can override opposition and push the plan through if it deems the terms fair to all parties.
The final vote takes place on Friday (1 August), with a judgment expected shortly after.
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