Trafford Centre owner locked in crisis talks as it battles for survival

Trafford Centre

The landlord of Manchester’s Trafford Centre and Arndale Centre are in crisis talks to save its business – according to reports.

According to the reports Intu has been talking to its creditors and to its main shareholder – the Manchester based Peel Property Group.

Intu was already struggling with huge debts and falling property valuations.

And a planned £1.5bn fundraise was abandoned when potential investors failed to show any interest.

Most of the firm’s shopping centres are now closed as a result of the restrictions imposed by the government.

The coronavirus crisis could be about to push the struggling business over the edge.

This week the firm announced that two thirds of its tenants have not paid their rent this month.

Retailers including Burger King, B&Q, Primark and Topshop have all withheld payments.

One of the options on the table for Intu us the sale of some of its high profile centres.

According to industry reports Intu is talking to Peel Properties about the possible sale of the Trafford Centre.

Manchester property tycoon Sir John Whittaker developed the shopping centre in 1998.

His firm is currently the biggest shareholder in Intu with a 27% stake.

It is understood that Intu chief executive Matthew Roberts has been involved in talks for the last seven days.

As well as talking to shareholders Mr Roberts has been talking to its banks about relaxing covenant terms and lending terms.

Sir John Whittaker is understood to be considering taking a 50% stake in the Trafford Centre.

The firm is also looking for more support from the Government.

The majority of 2,600 staff members will be eligible for the government’s emergency measures to pay 80% of salaries up to £2,500 a month under its furlough scheme.

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