---
title: "River Island Secures Court Approval for Restructuring Plan to Avoid Administration"
publisher: "Share Talk"
author: "sharetalk"
published: "2025-08-09T09:54:30+00:00"
modified: "2025-08-09T09:54:30+00:00"
date: 2025-08-09
canonical: "https://www.share-talk.com/river-island-secures-court-approval-for-restructuring-plan-to-avoid-administration/"
category: "B2B"
categories: ["B2B", "Business & Support Services", "Technology", "Technology, Media & Telecoms"]
tags: ["Ben Lewis", "High Court", "high street", "retailers", "River Island"]
image: "https://i0.wp.com/www.share-talk.com/wp-content/uploads/2025/08/dreamstime_l_389071339-scaled.webp?fit=1200%2C853&quality=80&ssl=1"
format: "news"
language: "en-GB"
---

# River Island Secures Court Approval for Restructuring Plan to Avoid Administration

**Published:** August 9, 2025
**Author:** sharetalk
**Categories:** B2B, Business & Support Services, Technology, Technology, Media & Telecoms
**Tags:** Ben Lewis, High Court, high street, retailers, River Island
**Featured image:** ![](https://i0.wp.com/www.share-talk.com/wp-content/uploads/2025/08/dreamstime_l_389071339-scaled.webp?fit=1200%2C853&quality=80&ssl=1)

---

**River Island Rescue Plan Approved, Saving Over 4,000 Jobs but Putting More Than 1,000 at Risk**

River Island has secured High Court approval for a major restructuring plan that will safeguard over 4,000 jobs, though more than 1,000 remain at risk as the fashion retailer adjusts to the ongoing shift toward online shopping.

The family-owned clothing chain will close 33 of its 230 stores as part of the cost-cutting strategy. A further 70 locations could also be affected, depending on ongoing lease negotiations and commercial viability.

The rescue plan, which includes significant rent reductions, was backed by a majority of creditors earlier this week and received final court approval on Friday. Without the restructuring, the company had warned it could run out of cash by the end of August and would be unable to meet its financial obligations.

Chief executive Ben Lewis welcomed the court’s decision, saying:

> “We are pleased that River Island’s restructuring plan has been approved by the High Court. The plan will enable us to align our store estate to our customers’ needs and ensure the long-term health of the business.”

The move marks a significant step in River Island’s efforts to adapt to a rapidly changing retail landscape and secure a more sustainable future.

**River Island Blames Soaring Costs and Online Shift for Restructuring, Posts £33.2m Loss**

River Island has attributed its financial troubles to a “sharp rise in the cost of doing business over the last few years” and the continued shift toward online shopping, which it says has left the company with an oversized store estate no longer aligned with customer behaviour.

The fashion retailer reported a pre-tax loss of £33.2 million in 2023, according to its latest filings with Companies House. This marks a sharp downturn from the £2 million profit it posted in 2022, as sales fell by over 19% to £578.1 million.

To support its restructuring and stabilise its finances, River Island has secured £40 million in new funding from the investment vehicle of the founding Lewis family, who continue to control the business.

The approved restructuring plan — which involves 33 store closures and puts over 1,000 jobs at risk while saving more than 4,000 — is expected to serve as a bellwether for other high street retailers. Industry observers are closely monitoring the outcome, with chains such as Poundland, Claire’s, and Hobbycraft also exploring options to scale back their physical store networks in response to shifting retail dynamics.

---

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