Intu warns shopping centres may close if administrators called in

Intu has warned that if crunch talks this week with lenders fail, it may fall into administration and be forced to close shopping centres.

The UK shopping centre operator has been in talks with key stakeholders to reach a standstill agreement on terms of up to 18 months ahead of the revolving credit facility covenant waiver deadline of 26 June 2020.

“In the event that intu properties plc is unable to reach a standstill, it is likely it and certain other central entities will fall into administration,” Intu said in a statement. “In this situation, all property companies would be required to pre-fund the administrator to provide central services to the shopping centres. If the administrator is not pre-funded then there is a risk that centres may have to close for a period.”

The company confirmed it has put accountancy firm KPMG on standby to act as administrator.

Photo credit: Intu Lakeside