The high street fashion chain also needs to secure further funding later this year in order to preserve its future, according to documents shared with creditors.
The London-based company has laid out a major rescue plan which will see it shut 33 stores and pay reduced rents on a further 71 shops.
Today’s News in 90 Seconds – July 24th
It currently operates around two dozen stores in Ireland and closed its Henry Street, Dublin, store last month.
Landlords are being asked to cut rents for three years and potentially pause rent collections on some sites in a bid to stem losses.
The plan, which will also see it write off parts of its heavy debt pile, will need court approval next month.
River Island will need the backing of 75pc of the group’s creditors, predominantly landlords, at a hearing on August 7.
The company said talks with creditors have been positive and it expects to gain approval for the restructuring plan.
However, company documents first reported by The Telegraph warned that the company will be “unable to pay its debts” by the end of the month if the plan is rejected.
It indicated that the company will not be able to keep trading if it fails on these payments and would therefore “be subject to administration or other insolvency proceedings”.
The documents also highlighted that the company faces a £10m (€11.5m) “funding need” in September, which could balloon to £50m by next year.
A River Island spokeswoman said: “River Island circulated its proposals for a restructuring plan to creditors on June 20.
“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 employs around 5,500 people in England and Ireland and was founded in 1948 under the Lewis and Chelsea Girl brand before being renamed in the 1980s.
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