Car park firm NCP collapses with nearly 700 jobs at risk

National Car Parks (NCP) has gone into administration, putting 682 jobs at risk.

The administrator, PwC, said demand for parking had not recovered to pre-Covid levels, pointing to "shifts in commuting and customer driving patterns".

It said after consistently losing cash, NCP could no longer afford to pay its creditors and was unable to scrap "long-term, inflexible" leases on loss-making sites.

PwC is looking to sell the business as the "best outcome" for those NCP owes money to.

"All sites are open, staff remain in post, and trading continues as normal," PwC added.

"We will be engaging with landlords, employees, and other stakeholders as we explore all options."
NCP is one of the biggest car park operators in the UK, running 340 car parks across the country, including in airports, hospitals and transport hubs.

The firm's debts were £305m greater than the value of its assets, as of 30 September last year,according to a filing from its parent company.

PwC said NCP had a "high concentration" of inflexible leases that prevented it from reducing costs or scrapping unprofitable car parks.

Zelf Hussain, joint administrator and PwC partner, said the company had faced "a challenging trading environment" in recent years.

"Our priority on appointment is to ensure continuity of service while we undertake a detailed review of the business."
NCP's parent company, Park24, said higher energy prices as a result of the outbreak of war in Ukraine in 2022 also put pressure on the business, adding to its operating costs.

It said NCP "pursued new car park developments to support revenue growth", as well as implementing cost-cutting measures, but "structural losses continued".

The company concluded that "no prospect of improvement in its cash‑flow position could be identified".

BBC News has contacted the British Parking Association, which represents car park operators, for comment.