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Britain’s biggest car park operator is reportedly close to being placed into administration.
Japanese-owned National Car Parks group (NCP) filed a notice of intention to appoint administrators to its operation in the UK this morning.
The firm runs around 200,000 parking spaces at 800 sites across the UK and employs about 1,000 people.
In a statement, NCP said the company's performance had "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."
PricewaterhouseCoopers is understood to have been lined up to handle the potential insolvency.
The firm has been owned by Park24, a Tokyo-listed company, since 2017 after being sold by Australia’s Macquarie European Infrastructure Fund.
NCP was badly affected during the pandemic when its sites were left practically deserted for month on end during lockdowns.
The firm is reportedly due to make large rent payments at the end of March.
The company’s latest accounts show that it made a pre-tax loss of £28.2 million in the year to 30 September 2023 and was £22.5 million in the red the previous year.
In a statement on their website, the company said Zelf Hussain, Rachael Wilkinson and Toby Banfield of PwC have been appointed as Joint Administrators of National Car Parks Limited and will now take steps to stabilise the business while assessing options for its future.
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.”