The latest on retail park store as fashion brand faces collapse
River Island is reportedly at risk of collapsing into administration as it attempts to turn its fortunes around by closing dozens of stores.
The high street chain announced last month it was proposing the closure of 33 of its 230 stores by January 2026 as part of a restructuring plan.
However, the company could find itself unable to pay its debts by the end of August should the plan be rejected, as reported by The Telegraph.
It also needs to secure more funding for later this year in order to avoid disappearing from the high street altogether.
The rescue plan also includes the fashion retailer paying reduced rents on a further 71 shops, with landlords to be asked to cut rent for three years and potentially stop payments completely.
A spokesperson for River Island could not confirm whether Swindon's Orbital Shopping Park store was one of the stores that had been earmarked for rent reduction.
However, the company has confirmed that the town's shop is not one of the 33 stores selected to be closed by the end of the year.
The Orbital store will be one of the last remaining River Island stores in the area should the proposed closures go ahead as planned, with shops in Didcot, Oxford and Gloucester all set to be culled.
A spokesperson for River Island said: "River Island circulated its proposals for a Restructuring Plan to creditors on June 20th.
"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."
River Island's store in The Parade in the town centre closed down in January 2021, with the retailer opening their new store at the Orbital shortly after that in April.
The company made a loss of £33.2 million in 2023 as sales slid by 19 per cent, according to its most recent set of accounts.
Around 5,500 people are currently employed by River Island.
Ben Lewis, chief executive of River Island, said in June: "River Island is a much-loved retailer, with a decades-long history on the British high street.
"However, the well-documented migration of shoppers from the high street to online has left the business with a large portfolio of stores that is no longer aligned to our customers' needs.
"The sharp rise in the cost of doing business over the last few years has only added to the financial burden.
"We regret any job losses as a result of store closures, and we will try to keep these to a minimum."
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