UK shopping centre owner Intu has collapsed into administration after negotiations with its lenders failed ahead of today’s debt covenant deadlines.
The owner of Trafford Centre in Manchester, Lakeside and Metrocentre in Gateshead has appointed James Robert Tucker, Michael Robert Pink and David John Pike of KPMG as joint administrators. The group’s shopping centres, held in separate operating companies, will continue to trade.
KPMG previously warned creditors they would need to provide £12m to cover the administration process, or risk the short closure of some centres. The confirmation came after Intu warned earlier today that it was on the verge of collapse – and minutes after the London Stock Exchange suspended shares in the listed firm.
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.
