Shopping Centre Owner Intu Properties Hit by Cashflow Crisis

Written by: Keith Tully

Published: 13th March 2020

Intu shopping centreThe owner of many of the UK’s biggest shopping centre facilities is facing an uncertain future as it tries to avoid collapsing amid a serious cashflow crisis.

Intu Properties has cited the turmoil caused by the coronavirus outbreak as an important contributing factor to circumstances that now mean it is fighting for survival.

Plans that might have seen the company raise in the region of £1.5 billion have been abandoned, with the business having posted full-year losses worth around £2 billion.

Statements given on behalf of Intu make clear that there is now a “material uncertainty” around whether the business will be able to remain operational as a going concern for much longer.

Potential routes to a more stable financial footing are being considered by bosses at the company, whose portfolio of shopping centres includes those at the Trafford Centre in Manchester and the Lakeside in Essex.

“We have options including alternative capital structures and further disposals to provide liquidity, and will seek to negotiate covenant waivers where appropriate,” outlook statements given by Intu explained.

“In the short term, fixing the balance sheet is the priority,” they said.  

The UK’s retail sector has been facing unusually tough trading conditions in recent quarters and Intu describes its own financial performance as being “evidence of the challenges in our market”.

“This has led to a higher level of administrations and CVAs and has been exacerbated by the continued weak consumer confidence from the political and economic uncertainty in the UK,” the company said.

Those issues are cited as key reasons why Intu’s like-for-like net rental income reduced by 9.1 per cent across 2019.

From the perspective of its operations in the retail property investments market, Intu’s activity was weakened notably as shopping centre transactions endured their slowest year since 1993.

Julie Palmer from the corporate insolvency experts of Begbies Traynor has said that the “rippling effect of the high street malaise has rocked Intu Properties”.

“As more high-street brands fail under the ruthless market conditions, Intu has been one of the first victims to suffer with a high number of store closures at its locations,” she said.

“The failure to proceed with an equity raise means the company’s future and the next few months will prove decisive.”

Keith Tully

Keith Tully

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Dealing with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners

This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies. For more information on how we use and manage cookies please read our PRIVACY POLICY