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A further 71 shops could also see their rents slashed and a series of debts written off by the company as part of the rescue deal.<\/p>\n
Picture: High street fashion giant River Island is on the brink of collapse, with hundreds of people set to lose their jobs “within weeks”.<\/p>\n Unless an unlikely last-minute deal can be agreed, the retailer is set to shut up shop for good following a a slump in trading.<\/p>\n Bosses are still fighting to save the fashion chain from a liquidity crisis and have proposed closing down 33 stores across the UK.<\/p>\n A further 71 shops could also see their rents slashed and a series of debts written off by the company as part of their rescue deal.<\/p>\n Accountancy firm PwC, which is advising the retailer, will put forward the proposals to the High Court next week.<\/p>\n The company’s advisors are hoping to convince River Island’s creditors to green-light their bailout plans.<\/p>\n Read more: <\/strong>UK to sign ‘biggest deal since Brexit’ as Starmer and Modi agree ‘historic’ India trade deal worth \u00a36 billion<\/a><\/p>\n Read more: E<\/strong>ssex Police to \u2018step up response\u2019 to migrant hotel protests as chief denies demonstrators were \u2018bussed\u2019 to protest<\/a><\/p>\n Unless an unlikely last-minute deal can be agreed, the retailer is set to shut up shop for good following a slump in trading.<\/p>\n Picture: If they do, it would unlock an emergency loan from River Island’s billionaire founders, the Lewis family, which would help them pay their bills and stay afloat.<\/p>\n But if the High Court rejects these proposals, River Island will run out of cash by the end of August, leaving it “unable to pay its debts as they fall due”.<\/p>\n The company warned creditors it “will not be able to continue trading as a going concern” and “would be subject to administration or other insolvency proceedings”.<\/p>\n PwC revealed in an 800-page report that River Island faces a \u00a310million ‘funding need’ in the second week of September, which could soar to \u00a350million before Christmas.<\/p>\n PwC’s plan would allow the fashion house to walk away from tens of millions of pounds worth of debts, including outstanding fees owed to landlords – such as British Land, the Crown Estate and Mike Ashley’s Frasers Groups.<\/p>\n But insiders believe the proposals may prove unpopular, as many within the industry feel River Island has expanded too much in recent years.<\/p>\n The company’s advisers are hoping to convince River Island’s creditors to green-light their bailout plans.<\/p>\n Picture:
\nGetty
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\nAlamy
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