Intu, the co-owner of The Mall at Cribbs Causeway has collapsed into administration, leaving more than 102,000 workers worrying about their livelihoods.
Administrators, KPMG, have been called in on 26th June to help the group deal with the £4.5 billion debt.
What is Intu?
Aside from The Mall at Cribbs Causeway, the Intu group owns 17 shopping centres. This includes 9 of the top 20 shopping centres in the UK.
Amongst their portfolio are the the Trafford Centre in Manchester, Lakeside in Essex, and many others.
Why has Intu collapsed?
The group has become yet another corporate COVID-19 casualty, but it’s thought that this could be the biggest so far due to the number of jobs affected.
Although Intu employes only 3,000 directly, more than 102,000 work in shops and provide services throughout the network of shopping centres.
The cause of the collapse comes after many shops closed in March due to the COVID-19 pandemic, which has led to Intu receiving only 29% of its expected rent payments.
What will happen to Cribbs Causeway?
The Mall at Cribbs Causeway is a the biggest out-of-town shopping centre in the South West.
The 730,000 sq ft shopping centre boasts 135 shops and 7,000 parking spaces while hosting household names such as John Lewis and Marks & Spencer, and more recently Tesla.
Fortunately, Intu doesn’t own all of the shares of The Mall at Cribbs Causeway, meaning that they’re not the only owner. The Mall at Cribbs Causeway is jointly owned by Intu, M&G Real Estate and JT Baylis.
KPMG will likely want to sell Intu’s shares to help Intu recover as much money as possible towards the £4.5 billion bill, but other options could also be on the table.
Cribbs Causeway and Manchester Arndale will remain open and CBRE will continue the day-to-day management of the malls.M&G Real Estate
In the meantime, KPMG has stated that the individual retail shops within Intu’s shopping centres are owned by the retailers, so shops will continue to operate while the administration process is carried out.
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