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 stay 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 at airports, hospitals, and transport hubs.
The Japanese-owned company, whose parent Park24 is listed in Tokyo, has struggled with changing commuting and driving patterns, according to PwC. Park24 revealed NCP had debts of £352.6 million, blaming the collapse in demand during the Covid-19 pandemic and a subdued recovery, along with rising operating costs from higher energy prices and inflation-linked rent obligations.
Since the pandemic, demand for parking has not returned to historic levels, especially in city centres and commuter towns, as more people work from home. NCP's long-term, inflexible leases prevented it from cutting costs in line with revenues or exiting loss-making sites. 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.
PwC partner 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 possible outcome for creditors.
