Trafford centre at risk as Intu 'likely' to appoint administrators

Date published: 26 June 2020

The owners of the Trafford centre, Intu, say it's likely they'll appoint administrators after talks with the creditors didn't go as planned.

The group has struggled with over £4.5bn worth of debt over the past year and have been hit hard through the pandemic after taking significantly lower rents from the shops in their centres. 

The firm has issued an update today, saying: "On 23 June 2020, intu properties plc ('Intu') provided an update on discussions with key stakeholders to progress its standstill strategy ahead of the revolving credit facility covenant waiver expiry at 11:59 p.m. this evening, 26 June 2020.

"Since that update, discussions have continued with the Intu Group’s creditors in relation to the terms of standstill-based agreements.

"Unfortunately, insufficient alignment and agreement has been achieved on such terms.

"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."

They added that a further update would be made "as soon as possible". 

Intu has already appointed KPMG to contingency plan for administration.

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".

The Trafford Centre could be snapped up by rival operators though if Intu does fall into administration, but it's unclear whether the effect COVID-19 on the retail sector would hinder this.

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