NCP, the parking group hit by a pandemic, seeks to reduce its rents
Parking giant NCP has begun a formal ‘last resort’ process to withdraw from contracts for unprofitable parking lots and implement rent cuts as it recovers from the impact of stay-at-home orders. due to the coronavirus pandemic.
The company said it saw its revenues drop by 80% and the company’s restructuring plan will be submitted to creditors at the end of May.
Japanese owner of NCP Park 24 has said he supports the plan and will cut funding if it fails. The NCP said this would throw him into insolvency.
If the plan fails, 1,000 jobs are at stake and the future of his business looks uncertain.
The plan uses controversial new restructuring laws that could force owners to agree to changes even if they don’t.
NCP said it had tried to negotiate deals on 500 sites it currently uses.
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“The NCP has been deeply affected since last year due to the pandemic – sales during periods of full lockdown have typically been around 80% below normal levels; outside of lockdown, they have not increased beyond about 50% for any period of time. “
“This is not a short-term problem – many main streets and stations are unlikely to regain their pre-pandemic footfall,” NCP said.
The pandemic has fundamentally changed the way we travel and shop – a fact that has taken its toll on main streets and, consequently, in parking lots.
Last week, new figures from the British Retail Consortium (BRC) showed there are now 5,000 fewer stores on UK shopping streets since the start of the pandemic. One in seven stores is now vacant.
Even with the restrictions lifted, footfall on main streets is much lower than it used to be.
Yahoo Finance UK has contacted NCP for comment.
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