Jim Tucker, David Pike and Mike Pink from KPMG’s restructuring practice have been appointed joint administrators to intu properties, in addition to eight Topco subsidiaries.
intu properties owns and operates 17 shopping centres across the UK including intu Trafford Centre, intu Lakeside, intu Merry Hill and intu MetroCentre, in addition to a shopping centre and development site in Spain.
It directly employs circa 2,373 people, including 370 at its head office in London, and each year welcomes around 400 million visitors to its sites. Each of the shopping centres is owned individually by special purpose vehicles (Propcos) which are outside of any insolvency process and continue to trade as normal under the control of their directors.
Importantly, an agreement has been reached with key stakeholders which will allow continued provision of central services to the Propcos. Consequently, all of the shopping centres will remain open and operational while the joint administrators assess options for the business and assets of the group.
Jim Tucker, partner at KPMG and joint administrator, said: “intu owns many of the UK’s biggest and best-known shopping centres. The challenges affecting UK retail are well known and have been exacerbated by the impact of COVID-19 and the resulting lockdown. As today’s administration makes clear, those challenges have fed through to owners of retail property, even to owners of high-quality shopping centres such as intu’s.”
David Pike, partner at KPMG and joint administrator, added: “With all centres remaining open, we look forward to working with staff, suppliers and other key stakeholders to preserve value and jobs in these important retail destinations.”
Commenting on Intu, Richard Lim, CEO, Retail Economics said: “While the collapse has been highly anticipated, its significance cannot be understated. Many retail landlords remain stuck in an age of analogue retailing, sluggish to adapt their business model to the inevitable impact of online and evolution in consumer behaviour.
“The future for the retail property market is unsettling. The impact of Covid-19 will only accelerate these trends, pushing a greater proportion of spending online while making the commercial viability of physical retail even more challenging.
“Permanent changes in the way people work, travel and communicate will also create further challenges for destinations reliant on high levels of footfall from office workers.
“Meanwhile, the shift in investment towards more mixed-use space that offers flexible office, residential and more leisure and entertainment may end up misplaced.
Intu’s Shopping Centres:
- intu Breahead Glasgow
- intu Milton Keynes
- intu Broadmarsh, Nottingham
- intu Potteries, Stoke-on-Trent
- intu Chapelfield, Norwich
- intu Trafford Centre, Manchester
- intu Derby
- intu Uxbridge
- intu Eldon Square, Newcastle
- intu Victoria Centre, Nottingham
- intu Lakeside, Essex
- intu Watford
- intu Merry Hill, West Midlands
- Manchester Arndale
- intu MetroCentre, Gateshead
- St David’s Cardiff
- The Mall, Cribbs Causeway, Bristol