National Car Parks (NCP), the UK's largest car park operator, has entered administration, putting nearly 700 jobs at risk. The company's board appointed PwC as administrators after it ran out of cash, unable to pay landlords and creditors, with significant rent payments due at the end of March.
PwC stated it would take steps to stabilise the business while assessing options for its future, including a potential sale. All car parks remain open for now, and staff continue in their roles. NCP, founded in 1931 and known for its black and yellow signs, employs 682 people and manages 340 car parks across the UK, including in town centres, airports, hospitals, and transport hubs.
The Japanese-owned company, listed in Tokyo as Park24, has struggled due to shifts in commuting and driving patterns, the Covid-19 pandemic's impact on demand, and rising operating costs from higher energy prices and inflation-linked rent obligations. Park24 reported NCP's debts at £352.6 million.
Administrators noted that demand for parking has not recovered to pre-pandemic levels, especially in city centres and commuter towns, as more people work from home. Long-term, inflexible leases have prevented cost-cutting in line with revenues, pushing the company into losses. Trading continues normally for now, with no immediate changes for customers.
PwC is exploring a sale of all or part of the business and will review each location's viability, which could lead to site closures. Joint administrator Zelf Hussain 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.' He added that they would engage with landlords, employees, and other stakeholders to secure the best outcome for creditors.
Park24 noted that despite efforts to address lower demand through new developments and cost reductions, NCP's structural losses continued. NCP was founded by Colonel Frederick Lucas in 1931, expanded significantly after 1959, and has had various owners, including private equity firms and Macquarie, before being sold to Park24 and the Development Bank of Japan in 2017.
