The owner of the UK’s biggest shopping malls, including The Mall at Cribbs Causeway, Intu has tumbled into administration after failed crunch talks with its lenders.
The shopping centre owner said it has applied to appoint administrators from KPMG, after warning earlier on Friday that it was on the verge of collapse.
The confirmation came minutes after the London Stock Exchange suspended shares in the listed firm.
What will happen to the shopping centres?
However, the company said its shopping centres will continue to trade for the time being despite its insolvency.
Intu had been in a desperate scramble to agree a “standstill” on its current loan agreements.
Earlier on Friday the group said it was likely to appoint administrators, as it remained unable to agree the terms of such a deal with its creditors.
What have Intu said?
In a statement, the group, which had until midnight on Friday to reach a deal, said “insufficient alignment and agreement has been achieved”.
Earlier this week, Intu said it put the administrators from KPMG on stand-by as it looked to secure a deal ahead of the midnight deadline on its current loan covenants.
The group has struggled under a £4.5 billion debt burden for the past year, but has been hammered by significantly lower rent payments from retail tenants since the coronavirus outbreak.
Which shopping centres do Intu own?
The full list is as follows:
- intu Braehead Glasgow
- intu Broadmarsh, Nottingham
- intu Chapelfield, Norwich
- intu Derby
- intu Eldon Square, Newcastle
- intu Lakeside, Essex
- intu Merry Hill, West Midlands
- intu Metrocentre, Gateshead
- intu Milton Keynes
- intu Potteries, Stoke on Trent
- intu Trafford Centre, Manchester
- intu Uxbridge
- intu Victoria Centre, Nottingham
- intu Watford
- Manchester Arndale
- St David’s, Cardiff
- The Mall, Cribbs Causeway
How many people does Intu employ?
Intu employs about 3,000 staff across the UK, while a further 102,000 work for the shops within its shopping centres.
It warned on Tuesday, June 23, that its malls may be forced to shut if it was unable to secure the standstill agreement.