UK's biggest shopping centres at risk of closure as Intu says administration is likely

26 June 2020, 08:27

The shopping centre giant owns malls across the UK.
The shopping centre giant owns malls across the UK. Picture: PA
EJ Ward

By EJ Ward

Shopping centres across the UK could close after Intu Properties warned talks with lenders have failed to reach an agreement and it is on the verge of calling in administrators.

In a statement, the group, which has until midnight on Friday to reach a deal, said "insufficient alignment and agreement has been achieved", adding: "The board is therefore considering the position of Intu with a view to protecting the interests of its stakeholders.

"This is likely to involve the appointment of administrators. A further announcement will be made as soon as possible."

The group, which also owns Lakeside in Essex, confirmed earlier this week that it had put KPMG on stand-by to act as administrators.

It is hoping to arrange a so-called standstill agreement with lenders and warned that if it cannot reach a deal "there is a risk that centres may have to close for a period".

The collapse of the heavily-indebted group, which has suffered a plunge in revenues due to the lockdown, would place thousands of jobs at risk.