National Car Parks (NCP), the operator of 340 car parks across the UK, has appointed administrators to help “stabilise” its business.
Big-four accounting firm PwC has been brought in to rescue NCP after its performance “deteriorated over a number of years post-Covid 19”.
Reduced numbers of commuters following the Covid pandemic have meant “demand for parking has not recovered to historic levels”, said PwC, while “inflexible” ground leases have prevented NPC from cutting costs by closing less popular sites.
According to NCP’s most recent accounts, covering the financial year ending 30 September 2023, it was “reliant on the financial support of [Japanese parent company] Park24 Co”, having lost £26.8 million.
PwC said: “[NCP] now has insufficient cash available to meet its financial obligations and the directors have therefore taken the decision to appoint administrators.”
Administrator Zelf Hussain added: “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.
“Our priority on appointment is to ensure continuity of service while we undertake a detailed review of the business.”
That means NCP will for now retain its 682 staff while PwC weighs the impact of site closures or a sale of all or part of the business.