NCP, one of the UK’s largest car park operators with around 340 sites nationwide, has entered administration.
PwC has been appointed as administrator for the business. Some or all of NCP could be put up for sale as options to secure the firm’s future, with PwC describing the sale of the business as the best outcome for the company’s creditors.
The news puts 682 jobs at risk, although the administrator said all sites currently remain open with staff remaining in post while “trading continues as normal”.
The firm added: “We will be engaging with landlords, employees and other stakeholders as we explore all options.”
NCP has struggled with declining occupancy and growing losses since the pandemic and PwC said demand for parking had not recovered to pre-Covid levels. It pointed to “shifts in commuting and customer driving patterns”, which has been particularly severe in city-centre and commuter locations.
PwC said the firm had been stuck with “a high concentration” of long-term, inflexible leases and after consistently losing money could no longer afford to pay its creditors.
The firm was founded in 1931 and is owned by Japanese parent company Park24.
As of September 30 last year, NCP’s debts stood at £305m, greater than the value of its assets. Its latest accounts show it made a pre-tax loss of £28.2m in the year to 30 September 2023.
Zelf Hussain, joint administrator and partner for PwC, said: “NCP has faced a challenging trading environment over several years, with changing consumer behaviours impacting volumes, and a high fixed cost-base leading to trading losses.
“Our priority on appointment is to ensure continuity of service while we undertake a detailed review of the business.”
Please visit:
Our Sponsor