River Island’s bid to restructure its business and avoid collapse is now hanging in the balance after key landlords withheld support from its rescue plan, leaving the fashion retailer’s future uncertain.

The embattled British brand sought to close 33 stores, reduce rents on 71 shops — with some landlords asked to accept zero rent — and write off debts including business rates, in an effort to reduce costs and secure liquidity.

Although around 80% of creditors by value backed the plan in a court-supervised vote last week, the retailer failed to reach the required 75% approval in every individual creditor class.

Several landlords, including major property owners such as British Land and the Crown Estate, opposed the terms.

The restructuring plan will now be decided by a High Court judge at a sanction hearing scheduled for Thursday (7 August).

The judge must assess whether the plan offers a fair outcome overall, weighing the majority creditor support against objections from dissenting landlords and other creditor groups.

River Island, founded by the Lewis family in 1948, warned creditors in June that without approval, it risks running out of funds and entering administration as soon as early September.

The family, through their investment company Blue Coast Capital, is prepared to provide a £40memergency loan if the restructuring plan is sanctioned. Blue Coast is also the retailer’s largest creditor, with exposure of approximately £270m.

The retailer blamed its financial difficulties on rising costs, including wage inflation, and challenges adapting to a changing retail landscape dominated by online fast-fashion competitors such as Shein and Temu.

Revenue dropped 15% to £701.5 m in the year to December 2024, with a pre-tax loss of £32.3 m after reporting a profit the previous year.

A River Island spokesperson told the Telegraph: “The plan is a proactive measure to place the company on a firm footing. We have been having positive conversations with key stakeholders and remain confident of approval in the coming days.”

With thousands of jobs at stake, the judge’s ruling will be crucial in determining whether River Island can navigate its way back to stability or face a potential administration.

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