Intu on brink of collapse after “running out of options”

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Intu administration
Intu posted a £2 billion loss last week, up from £1.17 billion the year before
// Intu close to collapse after “running out of options”
// The retail landlord posted a 22% drop in the value of its portfolio last week

Retail analysts have reportedly warned that Intu is on the brink of collapse after “running out of options”.

Last week, the shopping centre owner posted a 22 per cent drop in the value of its portfolio and its debt-to-asset ratio had increased to 68 per cent.

It also posted a £2 billion loss, up from £1.17 billion the year before.


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Intu said the results were reflective of the ongoing challenges in the market, particularly the increased level of administrations and CVAs exacerbated by weak consumer confidence.

An analyst from Jefferies has said that Intu has run out of options and could collapse soon, Property Week reported.

Intu’s share price has dropped by 98 per cent in the past five years, and currently sits at 5.42p, a 97 per cent discount to reported net asset value.

Questions are now being asked about who would take control of Intu’s assets in the case of default.

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13 COMMENTS

  1. Too slow to react and face the realities of the market conditions well before the current calamity.

    They should have offered rentals at multi-year discounts. The PE would have simply found price discovery and booked the revenues up front.

  2. More retailers will ask for reduction with corona virus. The likes of Debenhams, carpet right and top shop will most likely be the next casualties of the high street. Sad times for the high street ahead.

  3. This will be the death of the high street. Intu won’t be able to reduce rents further. Footfall will drop dramatically.

    Business rates grace will help some retailers but clothing shops like next will be able to weather the storm. Retailer already on the knife edge like Debenhams might struggle to survive.

    All the best to the high street need more support, tax online, but with corona virus I don’t know what the answer will be.

  4. Its very sad 30 years. Over the years the retailers that have left due to, i understand,high rates should have been a lesson. As a resident ive emailed a few times to suggest what is needed in this area but was told the have a team for this. They havent done much good so far. A lot of smaller shops did close but i for one preferred lakeside. As a teenager we needed to go for Romford or Petticoat Lane for clothes. Shopping is going online so they need to think outside the box. Where the new food kitchens were supposed to be some type of music venue would be nice. I dont mean a nightclub but like Pizza Express has in Maidstone and Soho.

  5. Similar trend with many shopping centres. As markets change and shopping habits change, establishments like there also need to change. The retail high street is dying, Amazon has won. Need to adapt and adapt quickly. Open the doors to companies offering services. Allow for shopping centres to have company offices, solicitor firms, dentist, GP clinics, private health imaging, gyms, etc… .

  6. Happy to raise car parking charges, driving footfall away have done nothing to encourage the every day shoppers, what goes round come round……

  7. Traff Ctr will continue under Intu’s successor. It is the starting bell on the death of the place however. Investment will fall, maintenance, upkeep, etc will fall away and slowly it will lose appeal and ultimately close down. Will be flattened in 10 yrs.

  8. For shopping centers to survive they need to become destinations. Intu Watford is typical. Spent millions adding an extension to accommodate Debenhams and a cinema. Food court was eliminated and Watford marked “relocated” out on the center, nothing spent on poorly designed, expensive and poorly lit car parks.

    If Intu thought adding Debenhams was going to make Watford a place to visit, it explains the problem and the reason for their failure. Shopping centers need to evolve… or die.

  9. Need to listen to the consumer, predict trends and not be so arrogant to think that on line is not a threat! I think we are in a control alt reset period. Let’s see what happens!

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