Intu shopping centres set for administration as owners fail to negotiate rent relief

A national shopping centre chain has announced that it will “likely” be filing for administration.

Intu, which owns the Metrocentre and Trafford Centre, has been holding discussions with its stakeholders and creditors this month to try and secure the chain’s future.

However, it confirmed this morning that “insufficient” agreements have been made, and it is “likely” to have to appoint administration.

The company, which currently has 17 shopping centres in the UK, was aiming for a standstill agreement, meaning that it would be given relief on its rent payments as it manages its £4.5bn debt.

It said: “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.

“A further announcement will be made as soon as possible.”

Intu has not yet confirmed the permanent closure of its centres, or how many jobs this may affect.

Earlier this week, the company commented: “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.

“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.”