COVENTRY MESSAGE BOARD

One of the UK’s largest car park operators has entered administration after years of declining demand for city-centre parking.

National Car Parks has appointed joint administrators from PwC, with Zelf Hussain, Rachael Wilkinson and Toby Banfield now overseeing the business.

The company employs 682 people and manages around 340 car parks across the UK, including locations in city centres, airports, hospitals and transport hubs.

Administrators said the business will continue trading while a review is carried out and options for its future are assessed. All sites remain open and staff will continue in their roles for the time being.

NCP’s financial performance has been under pressure since the pandemic, with demand for parking failing to return to pre-Covid levels, particularly in commuter and city-centre locations.

PwC said long-term lease commitments have also limited the company’s ability to reduce costs as revenue declined.

As a result, the business has continued to incur trading losses and has now run out of cash to meet its financial obligations, prompting directors to place it into administration.

Hussain said the immediate focus would be on maintaining operations while the firm assesses restructuring options.

“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 said.

“Our priority on appointment is to ensure continuity of service while we undertake a detailed review of the business. All sites are open, staff remain in post, and trading continues as normal.

“We will be engaging with landlords, employees and other stakeholders as we explore all options, including the potential sale of all or part of the business, to secure the best possible outcome for creditors.”

PwC said it will now begin discussions with landlords and other stakeholders to assess the viability of individual locations. Some site closures may follow depending on the outcome of those talks.