NCP Announces Permanent Closure of 20 Car Parks After Administration Collapse
Around 20 NCP car parks are set to permanently close in a matter of days following the company's collapse into administration. Landlords and employees have been notified that administrators have determined these sites are no longer commercially viable, leading to imminent shutdowns.
Impact on Jobs and Commercial Viability
According to reports from Sky News, the closures will result in a small number of job losses. In a statement last week, PwC explained that continued shifts in commuting and customer driving patterns have impacted site occupancy. The high concentration of long-term, inflexible leases has prevented the company from reducing costs in line with revenue or exiting loss-making sites, resulting in ongoing trading losses.
Expert Analysis on Market Trends
Nick Stockley, partner at leading law firm Mayo Wynne Baxter, commented on the situation. He said, "These events show the combined impact of flexible working, cost-of-living challenges and fuel prices, as well as the general fall in high street shopping and increase in delivery services. There is also the hope that the public are thinking more green and using more eco-friendly modes of transport."
Future of NCP Sites and Leases
NCP's landlords will want new owners to take over both the leases and locations. The administrators are looking to sell the leases to new owners, with the NCP brand name unlikely to hold significant value. Stockley noted that town centre locations may interest residential property developers, while more profitable sites at airports and stations are likely to remain parking venues under new ownership, potentially saving some jobs.
Less profitable sites will be transferred as land sales, resulting in job losses. Stockley added, "NCP will have wanted the security of long-term leases but that has also been their downfall. There will also be the inevitable and significant knock-on impact of unpaid creditors who will also face insolvency."
