CR-2025-004622 - [2025] EWHC 2276 (Ch)

On 8^th August 2025 I approved a restructuring plan under Part 26A of the Companies Act 2006 (“the 2006 Act”) upon the application of River Island Holdings Limited (“the Plan Company”). These are my reasons for doing so.

The Plan Company is an intermediate holding company which wholly owns River Island Clothing Company Limited and River Island Fashion Limited, (together “the Group”) which, along with two other wholly-owned subsidiaries, are the operating companies of the business. The business is engaged in the design and retailing of clothing through three channels; (i) 223 (at the commencement of the restructuring 224) leasehold units; (ii) online; and (iii) utilising third-party sellers (wholesale, franchise, concession and consignment). The business has seen a steady decline of minus 3% on a like-for-like basis over a number of years: and within the business there has been a change of emphasis. There has been a growth in online sales, which has increased the cost base of that element of the business (through additional warehousing and distribution costs) but without any corresponding reduction in the cost of the stores, which themselves have experienced reduced in-store footfalls and sales, in particular in secondary locations. The change in consumer behaviour and the decline in some trading locations has meant that for some stores the passing rents are significantly above market levels. Lately, increased National Insurance contributions and a rise in the “living wage” have increased financial pressure by adding an extra £9.4 million to the annual cost base of the business.