// Intu to cut head office jobs due to decline in rental income amid a wave of CVAs, according to Property Week
// It’s anticipated less than 20 staff will be made redundant
// No front line staff will be affected
Intu is reportedly set to cull some jobs from its head office as a result of a decline in rental income amid a wave of CVAs.
The shopping centre giant, like many other retail property firms, has been hit by the recent spate of CVAs being launched by tenants, including Sir Philip Green’s Arcadia Group retail empire.
CVAs are a form of insolvency used by retailers to either close underperforming stores or seek cheaper rent.
For Intu, this has led to a net rental income decline from £460 million in 2017 to £450.5 million last year, while occupancy levels fell from 97 per cent to 96 per cent.
According to Property Week, a consultation period with head office staff has commenced, and no “front line” staff will be affected.
It is not known exactly how may staff will be affected, but it’s anticipated to be a small number as Intu reportedly does not have a need to inform the Department for Business, Energy and Industrial Strategy about the job cuts.
Intu has declined to comment.
Retailers would have to notify the Department for Business, Energy and Industrial Strategy about job cuts if they are making more than 20 within a 90-day period.
Intu’s workforce in the UK numbers around 2600.