Construction Enquirer NewsRead MoreShopping centre giant fails to agree financing deal with creditors
Shopping centre owner Intu warned this morning that it is “likely” to go into administration.
The company has been in talks with lenders in a bid to agree a financial restructuring deal.
Today it said: “Discussions have continued with the intu Group’s creditors. 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.”
KPMG is on standby to take over running the business.
Work stopped in March at Intu’s £86m revamp of the Broadmarsh Centre in Nottingham where Sir Robert McAlpine is main contractor.
Work has not restarted on the job and demolition specialist Coleman blamed cancellation of a major contract on the site for having to lay off 50 staff.
The company runs 17 shopping centres across the country.
Intu’s current development plans show a spending commitment of £141m over the next two years.
At intu Broadmarsh in Nottingham £68m of work is yet to be completed.
Vinci is also completing the revamp of the Trafford Centre and mac-group is working on a £12m scheme to modernise the external façade at Merry Hill Shopping Centre in Dudley.