Braehead shopping centre may have to close, owner warns

Intu Properties has warned its centres across the UK may be forced to shut 'for a period'.

23rd Jun 2020

The owner of Glasgow’s Braehead shopping centre is set to call in administrators.

Intu Properties has warned that its centres across the UK may have to close as it remains locked in talks with lenders.

The group, which also owns Manchester’s Trafford Centre and Lakeside in Essex, confirmed it has put professional services firm KPMG on stand-by and is negotiating with lenders.

Intu is hoping to arrange a so-called standstill agreement on terms of up to 18 months, but said it is unlikely to last more than 15 months.

It warned that if it cannot reach an agreement and is placed in administration, “there is a risk that centres may have to close for a period”.

Braehead, in Renfrew, hosts a number of big-name retailers – including Apple, Disney and Next – and restaurants.

An indoor ski slope, laser tag facility and bowling alley are also based at the centre.

“If the administrator is not pre-funded then there is a risk that centres may have to close for a period.”
Intu

Intu said: “In the event that Intu Properties plc is unable to reach a standstill, it is likely it and certain other central entities will fall into administration.

“In this situation, all property companies would be required to pre-fund the administrator to provide central services to the shopping centres.

“If the administrator is not pre-funded then there is a risk that centres may have to close for a period.”