Shopping centre giant Intu likely to appoint administrators

Andrew Cummings
June 29, 2020

Shopping mall owner Intu has collapsed into administration after talks with lenders on Friday, 26 June.

It employs around 2,600 people in several shopping centres across Britain and Spain.

The company had been struggling before the coronavirus outbreak to fill outlets in some of its centres, and had debts of about £4.5bn.

Though it has until midnight today to secure a deal, intu has said that talks with creditors in relation to the terms of standstill-based agreements have seen "insufficient alignment and agreement".

It was also seeking agreements from its wide range of creditors, from big banks to hedge funds, for them not to take action if it breached certain terms on its loans.

"The board is therefore considering the position of Intu with a view to protecting the interests of its stakeholders", it said. "This is likely to involve the appointment of administrators".

The Trafford Centre, along with Intu's other shopping centres, will stay open under administrators KPMG. It promised a further announcement would be made "as soon as possible".

If creditors don't give over £12m, the accountancy firm won't be able to run an orderly administration process, without which it is warned "there is a risk that centres may have to close for a period". Malls such as the Trafford Centre, Lakeside and Gateshead's Metrocentre would probably attract potential buyers, although its smaller regional malls may prove less popular.

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