Mon, 14 Jun 2021 | ADMINISTRATION
NCP, the UK's largest car park provider, has revealed that it is at risk of falling into administration ahead of a vote on the company's newly announced restructuring plan.
The restructuring plan would lead to a significant shakeup of the company's business model, resulting in many landlords facing large rent cuts. As such, some of the 500 landlords working with the company have reportedly entered into discussions with other operators in a bid to avoid a drop in rental income.
NCP has reportedly been facing financial struggles as a result of stay-at-home orders during the coronavirus pandemic. It has subsequently seen its revenues drop by 80 per cent and has turned to a possible restructuring in an attempt to save the company.
Commenting on the restructuring plan, NCP stated that a rent cut would be a "last resort" and it would instead be pursuing plans to pull out of contracts for unprofitable parking facilities. However, the firm stated that it would be forced to call in administrators if it is unable to secure support from car park landlords.
Park 24, NCP's Japanese owner, has stated that it backs the plans but will cut funding if it doesn't succeed. However, this will tip the carpark firm into insolvency.
However, an NCP spokesperson has said that the company's focus remains on securing the "best possible outcome" for the business, as well as for its creditors and stakeholders.
They added: "We would urge all landlords to vote in favour of the plan, which we firmly believe will result in a higher return for each class of creditor, than in the reasonable alternative, insolvency."
View the latest distressed UK businesses here.
Established home/healthcare recruitment agency with approx 100 carers available. Ideal for an existing operator business looking to expand.
This is a renowned independent and family-run body shop offering an extensive post-collision service catering to all car makes and models, including motorcycles, motor homes, and vans.
An opportunity to acquire renowned company based in the Midlands specialising in German cars. The company has client has invested significantly in the latest diagnostic equipment to offer the best quality services, including MOT and repairs completed...
26
|
Jul
|
Tunnelling construction technology company falls into administration | ADMINISTRATION
A tunnelling construction technology company based in Basing...
26
|
Jul
|
Sumer firm RMT completes second deal of the year | MERGER
RMT Accountants & Business Advisors, which is part of the Su...
25
|
Jul
|
Occupational health service provider secures PE backing for acquisitions | BUSINESS NEWS
A Hull-headquartered provider of occupational health service...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
We can help you capitalise on insolvent businesses. We list UK businesses in administration, liquidation and with winding up petitions daily. Ensuring our members never miss out on an opportunity
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.