Milton Keynes intu shopping centre "may have to close" as owners battle financial crisis

The company, which owns a string of major shopping centres in the UK, is struggling with debts of £5b and made a loss of £2b last year.

Bosses have until this Friday to sort out a new financial footing and they have already lined up administrators KPMG in case restructuring talks with lenders fail.

Today intu put out a statement warning that centres could shut.

It said: "In the event that Intu properties plc is unable to reach a standstill, it is likely it and certain other central entities will fall into administration. If that happened, the various group companies would have to put money into the administrator. If the administrator is not pre-funded then there is a risk that centres may have to close for a period."

Intu had been struggling before coronavirus to fill outlets within some centres sites and had heavy debts.

In March it announced it was in talks with lenders about new funding and is said to be asking for an 18 month 'standstill' that would freeze interest and debt repayments.

The company, which directly employs more than 2,000 people, was struggling with debt even before the coronavirus pandemic struck.

In early March, chief executive Matthew Roberts revealed 40 per cent of of the stores in intu centres were suffering money problems and trading on reduced rent. Second quarter rents are now due this month and it is likely that intu's debts will escalate as many of the stores will struggle to pay.

More than half the stores at intu MK are now re-open after spending three months shuttered during lockdown.

Intu's operations director Gavin Prior said today: “Footfall at intu Milton Keynes increased towards the end of last week and visitor numbers were up by 321 per cent on last weekend across all intu centres. We have welcomed well over one million visitors in total to intu centres across the UK and the safety measures we have introduced are working well."

He added: “People are visiting us on shopping missions, determined to spend money in their favourite shops, and many stores have told us that basket sizes are up on last year with several ‘big ticket purchases’. Fashion brands like Zara, Schuh and H&M have all been really popular, with queues forming throughout the day and a regular flow of shoppers.

“Visitors tell us they are excited to be out shopping again and feel safe at intu Milton Keynes due to the measures we have in place. Research we undertook during lockdown showed that returning to the shops was high on peoples’ agenda, and we are now seeing that play out. As more brands re-open over the next few weeks, we expect visitor numbers to continue to grow.”