Arabic version: NCP تدخل الإدارة، مهددةً مئات الوظائف

National Car Parks (NCP) has gone into administration, putting 682 jobs at risk. According to BBC News, the administrator PwC said demand for parking had not recovered to pre-Covid levels, pointing to “shifts in commuting and customer driving patterns” as a primary reason for the company’s collapse.

NCP has consistently lost money and could no longer meet its financial obligations. The company struggled with “long-term, inflexible” leases on sites that were not profitable. PwC is now seeking to sell the business as the best option for creditors.

While all NCP sites remain operational and staff are still in their positions, PwC is engaging with various stakeholders, including landlords and employees, to explore potential options for the company’s future. NCP operates 340 car parks across the UK, including locations at airports, hospitals, and train stations.

The company’s financial troubles are significant, with debts exceeding its asset value by £305 million as of 30 September last year. PwC noted that NCP’s high concentration of inflexible leases has hindered its ability to cut costs or close unprofitable locations.

NCP’s parent company, Park24, a Japanese firm, indicated that rising energy costs due to the outbreak of war in Ukraine in 2022 have further strained the business. Despite efforts to develop new car parks and implement cost-cutting measures, NCP has continued to face structural losses, leading to the conclusion that no prospect of improvement in its cash-flow position could be identified.