NCP Car Parks beg landlords to restructure rents to stave off collapse
The Covid-19 crisis has seen fewer people commuting to work, shopping and going out at night in cities and towns across the country. It’s led to a drop in demand for car parking spaces and a subsequent drop in income for NCP Car Parks.
With 1,000 employees the UK firm is close to administration prompting a desperate bid to ask some of its landlords for a cut in rents.
Bloomberg’s Alice Gledhill reported on May 1st: “The company failed to reach a consensual deal with property owners, but received “significant support” and estimates that at least 85% of its A1 landlords will back the proposal, according to a company statement. The first hearing on the restructuring plan --a U.K. court process introduced last year and available to struggling firms looking to reduce their liabilities even without support from a majority of creditors-- is due on May 28.”
Ian Carrotte of ICSM said the firm’s main shareholder Park24 has threatened to pull its support for NCP if a deal with the landlords draws a blank. He said: “That could trigger administration meaning any suppliers could be left out of pocket. And if NCP is in trouble due to the drop in parking required during the pandemic then you can bet other car park groups are also struggling. The advice is if one of these companies contacts you out of the blue and puts in a big order then check them first with ICSM as you could be supplying a company about to go bust – and you won’t get paid.”
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For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk