Intu administration could spell further uncertainty for F&B operators

26 June 2020 by
Intu administration could spell further uncertainty for F&B operators

Shopping centre owner Intu has fallen into administration after restructuring talks with lenders fell apart.

The landlord, which owns shopping centres including Lakeside in Essex, the Trafford Centre in Manchester and Braehead in Glasgow, has said its sites, which have large F&B offerings, would remain open during the administration process.

In a statement the company said: "Underlying group operating companies remain unaffected and all shopping centres are continuing to trade.

"The intu group's relationships with its tenants are with these operating companies, not the companies entering administration.

"The shopping centre operating companies have or are expected to enter into transitional services agreements with the administrators of the central entities to ensure continuity of service provision by the central entities to the individual shopping centres."

Stephen Owens, managing director of pubs and restaurants at Christie & Co, said the administration was evidence of the pressures being felt by landlords and tenants during the Covid-19 pandemic.

He added: "Whilst the sector received a much welcomed boost earlier this week with the PM confirming that the hospitality sector could open from 4 July, the news that Intu has fallen into administration shows that both landlords and tenants are facing unprecedented challenges.

"Landlords, tenants and other key stakeholders will need to work together to ensure that they can come through this crisis. It is to be hoped that a buyer can be found quickly to help safeguard jobs and businesses."

Photo: Shutterstock

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