As bankruptcy continues to scare and kill the retail industry in the UK, here’s one more fashion retailer struggling to survive.
River Island, the London-based high-street fashion brand, has said that it is now considering company voluntary arrangement proposal – better known as CVA.
And if it’s not CVA, it could be some other form of administration.
Another UK-based menswear retailer, the Baird Group, too recently launched CVA, which entails shutting down of its 18 stores.
Reportedly, River Island, impacted severely by coronavirus, has said it may shut down stores and cut down rents once CVA gets approved.
However, the retailer is apprehensive of CVA getting approved by creditors considering its economically stable standing in the market.
Here it is pertinent to mention that a firm can successfully undertake CVA only if 75 per cent of creditors mention it. We’ll have to wait and watch if that happens or not!
The struggle for River Island began ever since pandemic started spreading like a wildfire back in March – eventually leading to furloughing of major part of its staff.
But sadly that’s been the case with many UK fashion retailers every month since March, and the way cases are surging everywhere including in the UK, more will follow.