River Island’s future remains uncertain as the High Court hearing to approve its restructuring plan has been delayed by one day and is now scheduled for Friday 8 August.
The sanction hearing will decide whether the retailer can proceed with its plan to close 33 underperforming stores, reduce rents on 71 outlets — including proposals for zero rent on some locations — and write off debts such as business rates, all aimed at securing the company’s financial survival.
Last week’s court-supervised creditor vote saw around 80% of creditors by value back the proposal, but the plan fell short of the required 75% approval in every individual creditor class, with several major landlords including British Land and the Crown Estate opposing the terms.
-
Related Story
-
The delay gives the embattled fashion retailer‘s leadership more time to engage with dissenting landlords and creditors ahead of the judge’s ruling, which will weigh majority creditor support against objections from key property owners.
Founded in 1948 by the Lewis family, River Island warned creditors in June that failure to secure the restructuring approval risks the company entering administration as soon as early September.
The family, via their investment firm Blue Coast Capital, has offered a £40m emergency loan if the plan is sanctioned. Blue Coast also remains the retailer’s largest creditor with exposure of roughly £270m.
Click here to sign up to Retail Gazette‘s free daily email newsletter
