River Island could collapse ‘within weeks' if rescue plan isn't approved
This is according to a formal restructuring report drawn up by PwC – currently serving as the British retailer's advisors – seen and reported on by The Telegraph.
In the 800-page document, it is said that if the plan is rejected, River Island could run out of money by the end of August, leaving behind unpaid debts and pushing the company towards proceedings like administration or insolvency.
Among the proposals, which are to be put before the High Court next week, River Island has suggested to return the leases on 33 stores, reduce rents on a further 71 and write off a series of debts to mitigate its liquidity issue.
River Island's founders, the Lewis family, will be able to issue an emergency loan if the majority of its creditors approve of the plan.
In a statement shared with FashionUnited, a spokesperson for River Island said: 'River Island circulated its proposals for a Restructuring Plan to creditors on June 20.
'In combination with the company's ongoing Transformation Strategy, the Plan is a proactive measure to place the company on a firm footing. We have been having positive conversations with key stakeholders and are confident that we will achieve approval of the Plan in the next few weeks.'
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