Business

NCP car parks giant warns its landlords: It’s rent cuts or bust

NCP car parks giant launches restructuring plan, and warns its landlords: It’s rent cuts or bust

Owners intend to plough in £120million over two years if the plan is accepted

Car parks giant NCP has warned it’s prone to go bust if it doesn’t obtain the help of landlords for a vital monetary restructuring.

The company, which operates greater than 500 websites and has 1,000 workers, yesterday formally launched a restructuring plan because it makes an attempt to slash its rent invoice. The proposals will probably be put earlier than a court docket listening to on May 28.

NCP’s house owners – listed Japanese operator Park24 and the Development Bank of Japan – intend to plough in £120million over two years if the plan is accepted.

But Park24 has warned NCP that if the plan isn’t efficiently applied it is not going to proceed funding the business.

The British Property Federation opposes NCP’s plan, calling it a ‘sign’ to companies they will ‘stroll away from debt owed to property house owners’ if accepted.

NCP mentioned it has begun contingency planning for different choices, ‘which is able to doubtless be an bancrupt consequence for the business’.

The agency has put its car parks into six teams primarily based on the viability of every lease. The plan should be accepted by 75 per cent of collectors in every group however NCP can nonetheless search a decide’s permission to ignore their vote.

NCP mentioned it had been ‘deeply impacted’ by the pandemic chopping the variety of commuters and customers on the town centres.

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