Trafford Centre owner Intu warned it may fall into administration if it cannot reach a deal with its lenders.
The group which owns seventeen centres include Lakeside in Essex today confirmed that KPMG administrators have been put on standby in case it cannot reach a so-called standstill agreement with banks.
Intu, which was struggling before the Covid-19 pandemic struck,is asking for a standstill on loan repayments for up to 18 months, but said at this stage it is unlikely to be more than 15 months.
It has been hit further by the lockdown, as many of its tenants have demanded reduced rents or refused to pay rent altogether at their shuttered sites.First quarter rent was due in March but only 40 per cent has been paid.
In a statement released the morning the Company said:
“Notwithstanding the progress made with lenders, intu has also appointed KPMG to contingency plan for administration. 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.”