The UK's largest car parking company has entered administration for the second time this year, with around 700 jobs now at risk. National Car Parks (NCP) Commercial Services Ltd entered voluntary administration on Wednesday, September 30, according to official records from The Gazette.
Edward Williams and Timothy Andrew Higgins, of PwC, have been appointed as administrators. NCP, founded in 1931, operates car parks across major cities, transport hubs, airports, and hospitals. It is owned by Japanese company Park24 in partnership with the Development Bank of Japan and runs roughly 340 sites throughout Britain.
Financial struggles since pandemic
NCP has faced trading difficulties since the COVID-19 pandemic due to shifts in commuter habits and remote work trends. The company has also been challenged by high fixed costs from its long-term leases.
The business first entered administration in March following years of financial struggles. Over 30 unsustainable car parks have since shut, resulting in a small number of redundancies, while over 300 sites remained operational. At that time, NCP confirmed that 682 jobs were at risk, pointing to the increase in working from home, the rise of online shopping, and falling town centre footfall.
Rising costs and structural challenges
The cost of maintaining car park infrastructure, such as equipment, lighting, and staff, has continued to grow. Many car parks are situated in prime city centre locations, which means they face higher business rates. They also require regular maintenance to ensure they are structurally sound, as cars, including electric vehicles, get bigger and heavier.
As of September 30 last year, NCP had debts £305m greater than the value of its assets, according to a filing from its parent company. PwC previously said the company had a high concentration of inflexible, long-term leases that prevented it from reducing costs or scrapping unprofitable sites.
List of closed car parks
The following car parks shut earlier this year: Sheffield Central, Hartshead Square; London Brunswick Square; Bradford Southgate; Chester Browns Yard; Kidderminster Swan Centre; Nottingham Huntingdon Street; Southampton Portland Terrace; Lincoln Central; Belfast Dublin Road; Coventry Belgrade Plaza; Leicester St Nicholas Circle; Sheffield Blonk Street; Ashford County Square; Ashton-under-Lyne Cotton Street; Banbury Marlborough Road; Bexley Royal Oak Road; Birmingham Gough Street; Bournemouth Hinton Road; Bristol Nelson Street; Bromley Travelodge; Eastbourne Trinity Place; Exeter Market Street; Grantham Station 1-3; Hinckley Britannia Shopping Centre; Ipswich Portman Road; Leicester Abbey Street; Leicester East Street; Leicester Lee Circle; Leicester Rutland Centre; London Kings Cross St Pancras; London Knightsbridge; and Luton Regent Street.
