National Car Parks (NCP), one of the UK's biggest car park operators, has filed for administration after struggling under a £305m debt burden. The company, which dates back to 1931, entered administration at the high court in London this week, putting 340 car parks and 682 jobs at risk. The Japanese-owned business has been hit by shifts in commuting patterns, high rents linked to inflation, and inflexible long-term leases.
NCP's directors called in administrators from PwC after the company ran out of cash and could not secure further funding, with significant rent payments due. Administrators blamed 'continued shifts in commuting and customer driving patterns' due to the rise of working from home since the pandemic, as well as 'long-term, inflexible leases' of more than 10 years that prevented cost reductions or exit from loss-making sites.
The company's Japanese owner, Park24, noted that rents were linked to inflation, which soared after Russia's invasion of Ukraine in 2022. Despite cost-cutting efforts including job reductions and new developments, 'structural losses continued'. NCP had narrowly avoided administration in 2021 through a restructuring that wrote off arrears and cut rents.
NCP's history includes growth from London's post-war bomb sites and multiple owners, including US conglomerate Cendant, private equity groups Cinven and 3i, and Australian bank Macquarie. Park24 and the Development Bank of Japan acquired NCP for £450m in 2017 from Macquarie, which had loaded the firm with £450m of debt in its 2007 takeover. A 2012 restructuring wiped out £500m of debt, but the company continued to struggle.
Park24 plans to restructure its remaining UK business via subsidiary T24 UK, which holds 100 smaller car parks with shorter leases. It expects UK losses for several more years, including a £6m loss this year. NCP's collapse affects public sector contracts with the NHS and Home Office, from which it has earned £47m since 2012. Active contracts include Abellio Greater Anglia, Birmingham women's and children's hospitals NHS trust, Luton council, and the Home Office.
Administrators at PwC are exploring options including a sale, but all car parks remain open for now and staff are still in post. The future of the iconic Brewer Street car park in Soho, once host to London fashion week, remains uncertain as the company's decline marks the end of an era for a business that grew from wartime bomb sites.
