Intu warns shopping centres could close if it enters administration
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Shopping centre giant intu has warned that its shopping centres may have to close in the event of it falling into administration – something which could happen as early as this week.
The struggling shopping mall operator, which owns the Trafford Centre and Arndale shopping centres, has confirmed it is in discussions with lenders about a standstill agreement, which, at this stage intu says won’t extend past 15 months. The firm had originally asked for an 18 month agreement.
Intu has also confirmed that it has appointed KPMG to put together a contingency plan for administration.
In a statement this morning, intu 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.”
According to Property Week, intu could file for administration as early as Friday. The trade publication said that intu is holding talks with its lenders this week.