The owners of the intu Milton Keynes shopping centre have formally confirmed they will enter administration as of today (26/06).
intu Properties, which owns 17 shopping centres in the UK including the centre formerly known as Midsummer Place next to the centre:mk, had been in financial restructuring talks with its lenders.
But a pair of statements released earlier today confirm an agreement has not been reached ahead of a deadline for the end of today (26/06), and that that KPMG will now undertake an administration process.
The company’s share trading has also been suspended after a couple of months where it has been in freefall on the London Stock Exchange. Shares were trading at 1.2p each at one point on Friday morning.
intu Properties had been struggling with accumulated debt worth around £4.5bn, having posted losses of £2bn in 2019 even before the coronavirus crisis lead to one of the UK’s biggest ever economic contractions and the mass closure of many stores inside the UK’s shopping centres.
The company confirmed that for the time being, shopping centres in their portfolio including their MK outlet will remain open.
Their first statement read, “On 23 June 2020, intu properties plc (“intu”) provided an update on discussions with key stakeholders to progress its standstill strategy ahead of the revolving credit facility covenant waiver expiry at 11:59 p.m. this evening, 26 June 2020.
“Since that update, discussions have continued with the intu Group’s creditors in relation to the terms of standstill-based agreements. Unfortunately, insufficient alignment and agreement has been achieved on such terms.
“The Board is therefore considering the position of intu with a view to protecting the interests of its stakeholders. This is likely to involve the appointment of administrators.
“A further announcement will be made as soon as possible.”
A second statement later in the day confirmed the appointment of KPMG administrators to oversee the next step, and alerting the London and Johannesburg stock markets to suspend trading of intu shares.
intu Properties purchased the Midsummer Place shopping centre in 2014 for around £250million, with the mall immediately rebranded as intu Milton Keynes.