British landlord appoints lawyers as Poundland and River Island plot store closures

British Land, a commercial property company, has reportedly appointed lawyers to look into the rescue deals of struggling high street chains Poundland and River Island.

The firm is said to have been instructed by Hogan Lovells to seek further information on the restructuring plans for the two retailers, according to Sky News, to which British Land declined to comment.

The media outlet said British Land owns 20 Poundland stores, 13 of which could have compromised rents under the budget retailer’s restructuring. Similarly, seven of British Land’s 22 River Island stores are also believed to be impacted.

Sources for Sky News noted that the appointment of Hogan Lovells did not reflect an intention to formally challenge the plans, both of which remain subject to court approval.

For River Island, the proposed restructuring strategy, which has been refused by creditors and is now to be presented to the High Court at the delayed date of August 8, includes the return of leases on 33 stores, and rent reductions on a further 71.

Poundland, meanwhile, is hoping to narrow its store estate from 800 to between 650 and 700 locations. A total of 68 stores are already planned to close as part of a court-sanctioned restructuring, with its wider plan to then come before the court at the end of August.