One of the UK’s biggest car park operators, National Car Parks (NCP), has gone into administration with 682 jobs at risk as well as the potential closure of 340 sites across the UK. Administrators PwC have attributed the downfall of the company to the lack of people using car parks since Covid-19.
NCP has suffered economically since the pandemic with the need for parking decreasing especially in city centre car parks. Commuter locations have also taken a hit as less people travel to the office and have continued to work from home since 2020.
PwC said: “The company’s performance has deteriorated over a number of years post Covid-19 as demand for parking has not recovered to historic levels, particularly across city centre and commuter locations.
“Continued shifts in commuting and customer driving patterns have impacted site occupancy while the high concentration of long-term inflexible leases has meant the company has been unable to reduce costs in line with revenue or to exit loss-making sites resulting in ongoing trading losses.”
They also clarified that NCP “now has insufficient cash available to meet its financial obligations and the directors have therefore taken the decision to appoint administrators”.
Site closures across the 340 locations could be possible according to the administrators. For money-saving tips sign up to our Money newsletter here.
All NCP car parks are open and staff currently remain as the potential sale of all or part of the business is discussed.
Zelf Hussain, joint administrator and PwC partner, 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. All sites are open, staff remain in post, and trading continues as normal.
“We will be engaging with landlords, employees, and other stakeholders as we explore all options, including the potential sale of all or part of the business, to secure the best possible outcome for creditors.”
NCP operate car parks across Wales including in city centres such as Cardiff, Newport, and Swansea.
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