Latest news with #ChrisBowers
Fashion Network
16 hours ago
- Business
- Fashion Network
Relief for UK's River Island as High Court approves restructuring, but the hard work starts now
Chris Bowers, a partner and head of insolvency at Forbes Solicitors, told 'The real question now is whether the restructure plans are anything more than just a sticking plaster, prolonging an inevitable collapse in the near future. Restructure plans concentrate on shutting stores and cutting rents. Such moves support liquidity but stop short of addressing declining sales. River Island's most recent accounts show turnover fell more than 19%. Any form of long-term survival needs to reconnect the retailer with consumers to boost revenues, and quickly.' Bowers cited Arcadia, which went into administration just over a year after a CVA-based restructure. Meanwhile, Marty Bauer, retail and e-tail expert at e-commerce marketing platform Omnisend, told us: 'River Island's decision to restructure, including the closure of 33 stores, is a stark reminder of the ongoing challenges faced by retailers operating on the British high street. 'Sadly, this is an all-too-familiar tale, with physical stores often struggling to compete with the convenience and accessibility of online shopping, and sailing against the wind when it comes to shifting buying habits. 'The future of the high street is uncertain, but while online shopping continues to innovate with better customer service and convenience, many shoppers still value the tactile in-store experience and personal interaction. This is where the key to success still lies. 'While the likes of River Island and New Look have faced challenges on the high street, other fashion brands such as Uniqlo are going from strength to strength by creating a seamless shopping experience that offers well-curated selections, an efficient checkout process and unique in-store experiences such as clothing alterations.' As for the reason for the court's approval of the plan, Lucy Trott, managing associate and insolvency expert at law firm Stevens & Bolton, added that with it having been supported by 80% in value of the company's creditors but failing to meet the required 75% support in each creditor class, 'the High Court was asked to 'cram down' the dissenting categories of creditors [ that is, impose it on them ], which reportedly included landlords, local authorities and trade creditors. 'For the court to grant sanction, it would need to be satisfied that none of the dissenting classes of creditors would be worse off than in the 'relevant alternative' scenario which would likely be administration or liquidation, with a sale of the company's business or assets to follow. 'It is possible that the dissenting creditors could yet seek to appeal the court's decision to sanction the plan particularly in light of the damaging precedent this decision sets in relation to cramming down commercial landlords. However, the River Island creditors will no doubt be wary of appealing the court's decision in light of the recent Court of Appeal judgment on the Thames Water appeal. If the restructuring plan were to be upheld on appeal, an adverse costs order would rub further salt in the creditors' wounds.'
Fashion Network
19 hours ago
- Business
- Fashion Network
Relief for River Island as High Court approves restructuring, but the hard work starts now
Chris Bowers, a partner and head of insolvency at Forbes Solicitors, told 'The real question now is whether the restructure plans are anything more than just a sticking plaster, prolonging an inevitable collapse in the near future. Restructure plans concentrate on shutting stores and cutting rents. Such moves support liquidity but stop short of addressing declining sales. River Island's most recent accounts show turnover fell more than 19%. Any form of long-term survival needs to reconnect the retailer with consumers to boost revenues, and quickly.' Bowers cited Arcadia, which went into administration just over a year after a CVA-based restructure. Meanwhile, Marty Bauer, retail and e-tail expert at e-commerce marketing platform Omnisend, told us: 'River Island's decision to restructure, including the closure of 33 stores, is a stark reminder of the ongoing challenges faced by retailers operating on the British high street. 'Sadly, this is an all-too-familiar tale, with physical stores often struggling to compete with the convenience and accessibility of online shopping, and sailing against the wind when it comes to shifting buying habits. 'The future of the high street is uncertain, but while online shopping continues to innovate with better customer service and convenience, many shoppers still value the tactile in-store experience and personal interaction. This is where the key to success still lies. 'While the likes of River Island and New Look have faced challenges on the high street, other fashion brands such as Uniqlo are going from strength to strength by creating a seamless shopping experience that offers well-curated selections, an efficient checkout process and unique in-store experiences such as clothing alterations.' As for the reason for the court's approval of the plan, Lucy Trott, managing associate and insolvency expert at law firm Stevens & Bolton, added that with it having been supported by 80% in value of the company's creditors but failing to meet the required 75% support in each creditor class, 'the High Court was asked to 'cram down' the dissenting categories of creditors [ that is, impose it on them ], which reportedly included landlords, local authorities and trade creditors. 'For the court to grant sanction, it would need to be satisfied that none of the dissenting classes of creditors would be worse off than in the 'relevant alternative' scenario which would likely be administration or liquidation, with a sale of the company's business or assets to follow. 'It is possible that the dissenting creditors could yet seek to appeal the court's decision to sanction the plan particularly in light of the damaging precedent this decision sets in relation to cramming down commercial landlords. However, the River Island creditors will no doubt be wary of appealing the court's decision in light of the recent Court of Appeal judgment on the Thames Water appeal. If the restructuring plan were to be upheld on appeal, an adverse costs order would rub further salt in the creditors' wounds.'
Fashion Network
2 days ago
- Business
- Fashion Network
Relief for River Island as High Court approves restructuring, but the hard work starts now
Chris Bowers, a partner and head of insolvency at Forbes Solicitors, told 'The real question now is whether the restructure plans are anything more than just a sticking plaster, prolonging an inevitable collapse in the near future. Restructure plans concentrate on shutting stores and cutting rents. Such moves support liquidity but stop short of addressing declining sales. River Island's most recent accounts show turnover fell more than 19%. Any form of long-term survival needs to reconnect the retailer with consumers to boost revenues, and quickly.' Bowers cited Arcadia, which went into administration just over a year after a CVA-based restructure. Meanwhile, Marty Bauer, retail and e-tail expert at e-commerce marketing platform Omnisend, told us: 'River Island's decision to restructure, including the closure of 33 stores, is a stark reminder of the ongoing challenges faced by retailers operating on the British high street. 'Sadly, this is an all-too-familiar tale, with physical stores often struggling to compete with the convenience and accessibility of online shopping, and sailing against the wind when it comes to shifting buying habits. 'The future of the high street is uncertain, but while online shopping continues to innovate with better customer service and convenience, many shoppers still value the tactile in-store experience and personal interaction. This is where the key to success still lies. 'While the likes of River Island and New Look have faced challenges on the high street, other fashion brands such as Uniqlo are going from strength to strength by creating a seamless shopping experience that offers well-curated selections, an efficient checkout process and unique in-store experiences such as clothing alterations.' As for the reason for the court's approval of the plan, Lucy Trott, managing associate and insolvency expert at law firm Stevens & Bolton, added that with it having been supported by 80% in value of the company's creditors but failing to meet the required 75% support in each creditor class, 'the High Court was asked to 'cram down' the dissenting categories of creditors [ that is, impose it on them ], which reportedly included landlords, local authorities and trade creditors. 'For the court to grant sanction, it would need to be satisfied that none of the dissenting classes of creditors would be worse off than in the 'relevant alternative' scenario which would likely be administration or liquidation, with a sale of the company's business or assets to follow. 'It is possible that the dissenting creditors could yet seek to appeal the court's decision to sanction the plan particularly in light of the damaging precedent this decision sets in relation to cramming down commercial landlords. However, the River Island creditors will no doubt be wary of appealing the court's decision in light of the recent Court of Appeal judgment on the Thames Water appeal. If the restructuring plan were to be upheld on appeal, an adverse costs order would rub further salt in the creditors' wounds.'
Fashion Network
2 days ago
- Business
- Fashion Network
Relief for River Island as High Court approves restructuring, but the hard work starts now
Chris Bowers, a partner and head of insolvency at Forbes Solicitors, told 'The real question now is whether the restructure plans are anything more than just a sticking plaster, prolonging an inevitable collapse in the near future. Restructure plans concentrate on shutting stores and cutting rents. Such moves support liquidity but stop short of addressing declining sales. River Island's most recent accounts show turnover fell more than 19%. Any form of long-term survival needs to reconnect the retailer with consumers to boost revenues, and quickly.' Bowers cited Arcadia, which went into administration just over a year after a CVA-based restructure. Meanwhile, Marty Bauer, retail and e-tail expert at e-commerce marketing platform Omnisend, told us: 'River Island's decision to restructure, including the closure of 33 stores, is a stark reminder of the ongoing challenges faced by retailers operating on the British high street. 'Sadly, this is an all-too-familiar tale, with physical stores often struggling to compete with the convenience and accessibility of online shopping, and sailing against the wind when it comes to shifting buying habits. 'The future of the high street is uncertain, but while online shopping continues to innovate with better customer service and convenience, many shoppers still value the tactile in-store experience and personal interaction. This is where the key to success still lies. 'While the likes of River Island and New Look have faced challenges on the high street, other fashion brands such as Uniqlo are going from strength to strength by creating a seamless shopping experience that offers well-curated selections, an efficient checkout process and unique in-store experiences such as clothing alterations.' As for the reason for the court's approval of the plan, Lucy Trott, managing associate and insolvency expert at law firm Stevens & Bolton, added that with it having been supported by 80% in value of the company's creditors but failing to meet the required 75% support in each creditor class, 'the High Court was asked to 'cram down' the dissenting categories of creditors [ that is, impose it on them ], which reportedly included landlords, local authorities and trade creditors. 'For the court to grant sanction, it would need to be satisfied that none of the dissenting classes of creditors would be worse off than in the 'relevant alternative' scenario which would likely be administration or liquidation, with a sale of the company's business or assets to follow. 'It is possible that the dissenting creditors could yet seek to appeal the court's decision to sanction the plan particularly in light of the damaging precedent this decision sets in relation to cramming down commercial landlords. However, the River Island creditors will no doubt be wary of appealing the court's decision in light of the recent Court of Appeal judgment on the Thames Water appeal. If the restructuring plan were to be upheld on appeal, an adverse costs order would rub further salt in the creditors' wounds.'
