Intu giant shopping center enters administration

Intu shopping centerImage copyright
Jeff J Mitchell

The owner of some of the UK’s largest shopping malls, Intu, has called managers.

The firm, which owns the Trafford Center, Lakeside and Braehead complex, previously said it had not reached an agreement in the financial restructuring talks with its lenders.

Their centers will remain open under the administrators of KPMG.

The company said that the shares listed on the London and Johannesburg stock exchanges had been suspended.

The firm said it had appointed three administrators at the accounting firm KPMG and that “the appointment is expected to take effect soon.”

The company was one of the UK’s largest shopping center groups, with 17 centers in the UK and three in Spain.

Intu had been struggling even before the coronavirus outbreak with a debt of approximately £ 4.6bn.

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Intu owns the Trafford Center in Manchester

According to their annual report, released in March, their debts were worth 68% of their assets, a jump from 53% the year before.

Earlier this month, he informed investors that he expected the rent collected for 2020 to drop to £ 310 million from £ 492 million the year before.

As rental payments dwindled and property values ​​fell, their prospects dwindled.

The company and its broader supply chain support nearly 132,000 jobs, which will now be in doubt.

Intu centers were partially closed during the coronavirus blockade, and only essential stores were open. The company had approximately 60% of the mall staff and approximately 20% of the licensed central office employees.