Parking giant NCP collapses amid fears of almost 700 job losses and 340 car park closures

Consultancy firm PricewaterhouseCoopers has been appointed to undertake an assessment of the options for the business, which was first established in 1931.

PwC noted that the performance of NCP car parks had dropped in the years following the coronavirus pandemic, as demand for parking "has not recovered to historic levels".

It added that the "high concentration of long-term, inflexible leases" meant NCP was unable to reduce costs or leave loss-making sites.

NCP now has insufficient cash to meet financial obligations, with the Directors of the company deciding to appoint administrators.

While the future of the parking company remains uncertain, PwC confirmed that all sites will remain open for the time being.

Similarly, employees would continue to be employed in their roles, while customers will not see any changes in day-to-day operations.

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."

Mr Hussain added that PwC would be speaking with landlords, employees and stakeholders to discuss the future of the company.

This could potentially include a sale of "all or part of the business" in a bid to "secure the best possible outcome for creditors".

Administrators will review the viability of each location, which could result in site closures as part of the process.

NCP, which is owned by Japanese firm Park24, had debts that were £305million greater than the value of its assets, according to filings from its parent company.

In total, NCP reports that it has more than 200,000 parking spaces at over 800 sites, while Park24 operates across seven countries.

Michael Lynch, partner at DMH Stallard, a specialist in business restructuring, noted that NCP was struggling with a "tightening cash-flow position".

He continued, saying: "It is likely that there was some creditor pressure and/or the directors deemed it necessary to place the company into a formal insolvency, on advice.

"Administration permits the company to continue trading whilst under a moratorium from creditor action - unless the court orders otherwise of the Joint Administrators consent.

"This moratorium allows the Joint Administrators to negotiate better terms on long leases, streamline the business and explore sale options, which will be free from NCP's debt obligations."