Latest news with #MatthewWeaverKC
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Scotsman
5 days ago
- Business
- Scotsman
Latest as major fashion retailer wins court rescue – but will 33 stores still close
Can this high street favourite's rescue plan keep shoppers coming through the doors? 🛍️ Sign up to the weekly Cost Of Living newsletter. Saving tips, deals and money hacks. Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... The High Court has approved a rescue plan giving River Island a chance to avoid administration But 33 UK stores are still set to close, with rents cut on a further 71 sites for three years Retailer seeks £54m funding to cover a projected £43m shortfall Shift to online shopping and rising costs blamed for financial troubles Plan aims to safeguard thousands of jobs and keep the 76-year-old brand on the high street Shoppers can breathe a partial sigh of relief after the High Court approved a rescue plan aimed at keeping a major fashion chain out of administration. The ruling gives 76-year-old retailer River Island a fighting chance of survival, with a three-year strategy designed to slash costs, secure new investment, and protect thousands of jobs. Advertisement Hide Ad Advertisement Hide Ad Matthew Weaver KC, representing the retailer in court, said River Island had 'simply not been able to reverse' years of falling footfall and sales. He pointed to the shift from high street shopping to online retail, as well as soaring energy, labour and supply chain costs, which have made its current cost base 'unsustainable.' (Photo: DANIEL LEAL/AFP via Getty Images) | AFP via Getty Images If the deal had been blocked, Weaver warned, the 'most likely scenario' was an immediate stock sell-off and the sale of River Island's brand and intellectual property – effectively wiping the chain from the high street and leaving only the brand name and online store behind. But what does the ruling mean for River Island's shops, and will any stores be closed? Advertisement Hide Ad Advertisement Hide Ad Will River Island shops still close? Despite the High Court ruling, dozens of River Island stores will still shut. As part of its rescue plan, the retailer will close 33 of its 223 UK and Ireland stores (though it's worth noting none of its Irish shops are on the closure list) and cut rents on a further 71 for three years – in some cases paying nothing at all.. The company is now seeking £54 million in fresh funding later this year to help plug a projected shortfall of over £43 million. The retailer hopes these measures will restore profitability, improve cash flow, and safeguard as many of its 5,500 jobs as possible. Advertisement Hide Ad Advertisement Hide Ad Founded in 1948 as Lewis and Chelsea Girl before rebranding in the 1980s, River Island has been a familiar sight on Britain's high streets for decades. Whether this restructuring will be enough to keep it there long-term now depends on fresh funding and whether shoppers keep coming through its doors. Which River Island stores are closing? 33 River Island stores are set to close. The affected shops are expected to remain open until January 2026, allowing the retailer to capitalise on peak trading before shutting their doors for good. The following River Island stores are earmarked for closure: Advertisement Hide Ad Advertisement Hide Ad Aylesbury Bangor, Bloomfield Barnstaple Beckton Brighton Burton-upon-Trent Cumbernauld Didcot Edinburgh, Princes Street Falkirk Gloucester Great Yarmouth Grimsby Hanley Hartlepool Hereford Kilmarnock Kirkcaldy Leeds, Birstall Park Lisburn Northwich Norwich Oxford Perth Poole Rochdale St Helens Stockton-on-Tees Surrey Quays Sutton Coldfield Taunton Workington Wrexham Online shopping and other stores are still operating as normal, and customers can continue to shop and redeem gift cards for now. Are you struggling to make ends meet as costs continue to rise? You can now send your stories to us online via YourWorld at It's free to use and, once checked, your story will appear on our website and, space allowing, in our newspapers.
.jpeg%3Fwidth%3D1200%26auto%3Dwebp%26quality%3D75%26crop%3D3%3A2%2Csmart%26trim%3D&w=3840&q=100)
Scotsman
5 days ago
- Business
- Scotsman
Latest as major fashion retailer wins court rescue – but will 33 stores still close
Can this high street favourite's rescue plan keep shoppers coming through the doors? 🛍️ Sign up to the weekly Cost Of Living newsletter. Saving tips, deals and money hacks. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... The High Court has approved a rescue plan giving River Island a chance to avoid administration But 33 UK stores are still set to close, with rents cut on a further 71 sites for three years Retailer seeks £54m funding to cover a projected £43m shortfall Shift to online shopping and rising costs blamed for financial troubles Plan aims to safeguard thousands of jobs and keep the 76-year-old brand on the high street Shoppers can breathe a partial sigh of relief after the High Court approved a rescue plan aimed at keeping a major fashion chain out of administration. The ruling gives 76-year-old retailer River Island a fighting chance of survival, with a three-year strategy designed to slash costs, secure new investment, and protect thousands of jobs. Advertisement Hide Ad Advertisement Hide Ad Matthew Weaver KC, representing the retailer in court, said River Island had 'simply not been able to reverse' years of falling footfall and sales. He pointed to the shift from high street shopping to online retail, as well as soaring energy, labour and supply chain costs, which have made its current cost base 'unsustainable.' (Photo: DANIEL LEAL/AFP via Getty Images) | AFP via Getty Images If the deal had been blocked, Weaver warned, the 'most likely scenario' was an immediate stock sell-off and the sale of River Island's brand and intellectual property – effectively wiping the chain from the high street and leaving only the brand name and online store behind. But what does the ruling mean for River Island's shops, and will any stores be closed? Advertisement Hide Ad Advertisement Hide Ad Will River Island shops still close? Despite the High Court ruling, dozens of River Island stores will still shut. As part of its rescue plan, the retailer will close 33 of its 223 UK and Ireland stores (though it's worth noting none of its Irish shops are on the closure list) and cut rents on a further 71 for three years – in some cases paying nothing at all.. The company is now seeking £54 million in fresh funding later this year to help plug a projected shortfall of over £43 million. The retailer hopes these measures will restore profitability, improve cash flow, and safeguard as many of its 5,500 jobs as possible. Advertisement Hide Ad Advertisement Hide Ad Founded in 1948 as Lewis and Chelsea Girl before rebranding in the 1980s, River Island has been a familiar sight on Britain's high streets for decades. Whether this restructuring will be enough to keep it there long-term now depends on fresh funding and whether shoppers keep coming through its doors. Which River Island stores are closing? 33 River Island stores are set to close. The affected shops are expected to remain open until January 2026, allowing the retailer to capitalise on peak trading before shutting their doors for good. The following River Island stores are earmarked for closure: Advertisement Hide Ad Advertisement Hide Ad Aylesbury Bangor, Bloomfield Barnstaple Beckton Brighton Burton-upon-Trent Cumbernauld Didcot Edinburgh, Princes Street Falkirk Gloucester Great Yarmouth Grimsby Hanley Hartlepool Hereford Kilmarnock Kirkcaldy Leeds, Birstall Park Lisburn Northwich Norwich Oxford Perth Poole Rochdale St Helens Stockton-on-Tees Surrey Quays Sutton Coldfield Taunton Workington Wrexham Online shopping and other stores are still operating as normal, and customers can continue to shop and redeem gift cards for now.
Western Telegraph
5 days ago
- Business
- Western Telegraph
River Island restructuring plan approved by High Court judge
The clothing retailer is looking to secure further funding later this year to avoid falling into millions of pounds' worth of debt. The London-based company has laid out a rescue plan which will see it shut 33 stores and pay reduced rents on another 71 shops. Landlords are being asked to cut rents for three years and potentially stop payments completely on some sites in a bid to stem losses. A number of geopolitical events have also resulted in continuing supply chain disruption Matthew Weaver KC Matthew Weaver KC, for River Island, told a hearing on Friday that the company 'simply has not been able to reverse' a trend of financial difficulty. In written submissions, he cited a decline in footfall and sales due to 'the pressures of a highly competitive and changing retail environment as well as the prevailing trend away from high street retail stores to online shopping'. He added: 'A number of geopolitical events have also resulted in continuing supply chain disruption which, together with energy, labour and other price increases, has resulted in a cost base that's too high and unsustainable at its current level.' After a meeting on August 1, five of the 10 classes of creditors approved the rescue plan, meaning River Island had to gain approval from the High Court to move forward. No one appeared at the court hearing on Friday to oppose the proposals. Mr Weaver said that if the plan were not sanctioned, the 'most likely scenario' is that River Island would 'enter into an insolvency process within which there would be a sale of the stock, brand and intellectual property'. He also said that River Island was forecast to be unable to pay its debts from late August or early September, with a projected shortfall of more than £43 million. In essence, the transformation plan seeks to address the root causes of the difficulties facing the group and to reposition River Island for long-term success Matthew Weaver KC The company is seeking funding of £54 million to make it more financially stable. River Island has 223 stores across the UK and Ireland although none of the Irish stores are facing closures, Mr Weaver said. In response to recent correspondence from some creditor landlords, Mr Weaver said there 'may well be an attempt by those landlords to extract value from the plan company by taking a ransom position'. He added: 'In essence, the transformation plan seeks to address the root causes of the difficulties facing the group and to reposition River Island for long-term success. 'It involves a combination of operational improvements, cost rationalisation and strategic investment, all of which are critical to restoring profitability, improving cash flow, and safeguarding jobs.' Sir Alastair Norris approved the restructuring plan, with a written judgment due at a later date. River Island employs around 5,500 people and was founded in 1948 under the Lewis and Chelsea Girl brand before being renamed in the 1980s.
