Milton Keynes' intu shopping centre under threat as owners warn they could go bust

The company had admitted there is a "material uncertainty" and says it risks going under if it cannot raise further funds.

Intu Properties has a debt of £4.5n and blames a slash in value of its portfolio shopping malls, which include Lakeside in Essex and the Trafford Centre in Manchester.

Today chief executive Matthew Roberts revealed 40 per cent of of the stores in intu centres were suffering money problems and trading on reduced rent. Administrations and Company Voluntary Arrangements (CVAs) for insolvency affected 167 of its stores.

Intu in MK, which opened in 2000 , boasts Debenhams as its largest store. Debenhams entered administration last year and closed 19 stores in January, while drawing up a lsit of 28 more due to close in the future.

Overall, intu's property portfolio is now valued at £1.98bn, - down 22.3 per cent from last year and 33 per cent from two years ago. the company expects rental income to fall again this year.

In a statement to the stock exchange, Intu said: “We have options including alternative capital structures and further disposals to provide liquidity, and will seek to negotiate covenant waivers where appropriate. These would address potential covenant remedies and the upcoming refinancing activities, with the first material debt maturities in early 2021.”

Mr Roberts , however, insists:"The store is not dying, it is evolving" and said around 90 per cent of all retail spend is still influenced by a physical store.

He added: "The right stores in the right locations will always play a vital role for retailers but, with all the recent commentary around the death of the store, you could believe that no one will be going shopping in the future.

"As the role of the store changes, then the relationship with our retail customers will change too. Data and insight are becoming increasingly important and it is key that we and our customers join forces and share data to ensure we both benefit and potentially share the risk and reward."

Though the company flagged a “material uncertainty in its ability to continue as a going concern”, it says it still has options, including selling off assets, negotiating with lenders and refinancing its debt.