The owner of Norwich’s Chapelfield shopping centre, Intu Properties, has said it is “likely” to go into administration.
Financial talks with one of Britain’s biggest shopping mall owners are reaching crisis level with the firm announcing that “insufficient alignment and agreement” has been achieved. It stated earlier this week that if it went into administration, its shopping centres would close “for a period”.
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It said the next step was “likely to involve the appointment of administrators”.
The firm which owns Chapelfield, which has just reopened after three months of seeing most of its shops closed because of coronavirus, is home to the likes of House of Fraser, Disney and the Apple store among others like local firm Lisa Angel.
Intu owns some of the UK’s biggest shopping centres including Lakeside, Essex and the Trafford Centre in Manchester.
It comes after Stefan Gurney, executive director of Norwich Business Improvement District, said he hoped Intu would succeed in obtaining a financial deal – but that the site would find new owners in a worst case scenario.
Intu has until just before midnight to sort its renegotiating on a mammoth rent deal.
The firm said: “Discussions have continued with the Intu Group’s creditors in relation to the terms of standstill-based agreements. 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.”
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