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 running out of cash and being 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 will remain open for now, and staff will continue in their roles. NCP, which dates back to 1931 and operates 340 car parks across the UK, has struggled due to shifts in commuting and driving patterns, according to PwC.
Its Japanese owner, Park24, reported that NCP had debts of £352.6m. The company blamed the collapse in demand during the Covid-19 pandemic and a subdued recovery, along with rising operating costs from higher energy prices and persistent inflation in the UK, leading to increased rent payment obligations.
Since the pandemic, demand for parking has not returned to pre-pandemic levels, especially in city centres and commuter towns, as more people work from home. NCP's long-term, inflexible leases have prevented it from cutting costs in line with revenues or exiting loss-making sites, pushing it into the red.
For now, trading continues as normal, and customers will see no immediate changes. The administrators are exploring a sale of all or part of the business and will review the viability of each location, which could lead to site closures.
