Intu, the UK shopping mall giant, may soon collapse

On the 23^rd of March, shopping centres across the UK were forced to close their doors after the government announced a national lockdown to contain the spread of the coronavirus. While restrictions have been eased, the damage has already been done for many. Indeed, the giant Intu revealed that it is very likely to collapse. It has been trying to restructure its finances but failed to do so.

The company owns huge malls such as MetroCentre and the Trafford Centre in northern England and Lakeside in the southeast. Following the Covid-19 pandemic, some of its shopping centres have reduced rent collections. It has been trying to progress talks with creditors ahead of a midnight deadline. However, in a statement, it revealed that “insufficient alignment and agreement has been achieved” and that “the board is therefore considering the position of Intu with a view to protecting the interests of its stakeholders”.

As such, it is very likely that the firm will soon employ administrators.  This is the process whereby a troubled company calls upon independent financial help in a bid to restructure its business, remain operational and to try to minimise job losses. While KPMG has been put on stand-by, another statement on the matter will be issued.

Intu is trying to restructure its business