Home / Business and Economy / NCP Car Parks Shutting Down Nationwide
NCP Car Parks Shutting Down Nationwide
29 Mar
Summary
- Up to 20 car parks abandoned, with more closures looming.
- Landlords face rent cuts or site shutdowns by NCP.
- Councils fear millions in lost business rates and crime hotspots.
Car park operators across Britain are facing significant disruption following the insolvency of National Car Parks (NCP), the country's largest operator. Landlords have been informed that NCP's facilities may be abandoned if they do not agree to lower rental rates. As of the current date, approximately 20 car parks have already been closed and left vacant in locations including Birmingham, Leicester, London, and Luton.
Communities nationwide are bracing for more of NCP's 318 sites to cease operations. This situation poses a risk of financial losses for landlords and a potential reduction in shopper numbers on high streets. Councils are also concerned about losing millions in business rates due to unoccupied properties. Insolvency experts are attempting to rescue NCP, but negotiations with landlords have been difficult, with some being asked to accept rent reductions exceeding 50% and a four-week rent waiver.
The collapse is attributed to several factors, including the lingering effects of the Covid-19 pandemic on parking demand, high rents, and increased energy costs. NCP's former owner, Park24, cited these issues, alongside inflexible long-term leases that prevented cost reductions. The company reported losses of nearly £27.5 million in 2022 and £26.7 million in 2023, despite a turnover of £187 million in the financial year ending 2023.
