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, leaving it 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, 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 NCP had debts of £352.6 million. The collapse in demand during the Covid-19 pandemic, a subdued recovery, rising operating costs from higher energy prices, and persistent inflation in the UK were blamed. Since the pandemic, parking demand has not recovered to historic levels, especially in city centres and commuter towns, as more people work from home.
Administrators noted that NCP has many long-term, inflexible leases, preventing it from cutting costs in line with revenues or exiting loss-making sites. Trading continues as normal for now, but a review of each location's viability could lead to site closures.
Zelf Hussain, a joint administrator and PwC partner, 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 explore all options, including a potential sale.
