NCP: Major UK car park firm collapses into administration
NCP, one of the UK’s largest car park operators, has gone into administration, putting 682 jobs at risk.
The company, which manages approximately 340 sites across the country, has been struggling with the decline in occupancy rate and increasing losses since the Covid-19 outbreak.
PwC has been appointed as administrator of the business.
Despite the move, all NCP car parks will continue to operate as normal and staff will continue to work while managers evaluate the company’s options.
The firm’s financial difficulties stem from a significant decline in parking demand post-pandemic, which has failed to recover to pre-Covid levels.
This decline has been particularly severe in downtown and suburban areas, attributed to changes in commuting and consumer driving habits that have affected parking lot occupancy.
NCP also cited the challenges posed by the high costs associated with long-term inflexible leases on sites that have become unprofitable.
Part or all of NCP may be offered for sale as one of the options to secure its future.
Administrators said NCP will evaluate the viability of each location and, as a result, some sites may need to be closed.
Zelf Hussain, joint director and partner at PwC, said: “NCP has faced a challenging trading environment for several years, where changing consumer behavior has impacted volumes and a high fixed cost base has led to trading losses.
“Our priority when making an appointment is to ensure continuity of service while conducting a detailed review of the job.
“All sites are open, staff are on duty and trading continues as normal.
“We will engage with landlords, employees and other stakeholders as we explore all options, including the potential sale of all or part of the business, to secure the best possible outcome for creditors.”
NCP was founded in London in 1931 and is owned by the Japanese company Park24.
It operates around 340 car parks across the UK, including in major towns and city centres, airports, hospitals and railway stations.
Prices vary at each site, but some central London locations can cost up to £60 for 24 hours of parking.
Latest accounts filed with Companies House show the company made a pre-tax loss of £28.2 million in the year to September 30, 2023, and was £22.5 million in the red the year before.
