NCP: Major UK car park firm collapses into administration
NCP, one of the UKโs largest car park operators, has entered administration, placing 682 jobs in jeopardy.
The company, which manages approximately 340 sites nationwide, has struggled with declining occupancy and mounting losses since the Covid-19 pandemic.
PwC has been appointed as administrator for the business.
Despite the move, all NCP car parks will continue to operate as normal, and staff will remain employed while administrators assess the future options for the company.
The firmโs financial difficulties stem from a significant post-pandemic drop in demand for parking, which has failed to rebound to pre-Covid levels.
This downturn has been particularly acute in city-centre and commuter locations, attributed to shifts in commuting and consumer driving patterns that have impacted car park occupancy.
NCP also cited challenges posed by the high costs associated with long-term, inflexible leases on sites that have become unprofitable.
Some or all of NCP may be put up for sale as one of the options to secure its future.
Zelf Hussain, joint administrator and partner for PwC, said: โNCP 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.
โOur priority on appointment is to ensure continuity of service while we undertake a detailed review of the business.
โAll sites are open, staff remain in post, and trading continues as normal.
โWe will be engaging with landlords, employees and other stakeholders as we explore all options, including the potential sale of all or part of the business, to secure the best possible outcome for creditors.โ
Since 2017, NCP has been owned by Park24, a Tokyo-listed company, after being sold by Australiaโs Macquarie European Infrastructure Fund.
Latest accounts filed at Companies House show that it made a pre-tax loss of ยฃ28.2 million in the year to 30 September 2023 and was ยฃ22.5 million in the red the previous year.
