// 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 warns on collapse after £2bn loss
- Intu ditches attempts to raise £1.5bn amid market uncertainty
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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