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Britain’s largest private car park operator is facing potential collapse after filing a notice of intention to appoint administrators for its UK business.
National Car Parks (NCP), which operates approximately 300 car parks across the UK and employs around 700 people, submitted the notice on Monday.
This move typically indicates that administration is likely to follow within days unless a rescue deal is reached.
Since 2017, the company has been owned by Park24, a global parking operator based in Japan, along with the Development Bank of Japan, following its sale by the Macquarie European Infrastructure Fund.
Park24 manages over 19,000 parking sites across eight countries, but it has reported that its UK branch has struggled due to declining demand and rising costs.
NCP stated in a notice posted on its website that the business experienced a significant downturn after the COVID-19 pandemic, which greatly reduced the demand for city-centre parking. While usage has partially recovered since then, it remains below pre-pandemic levels. Simultaneously, the company has dealt with increasing operating costs, including higher energy prices stemming from the Russian invasion of Ukraine, as well as persistent inflation in the UK and rent increases tied to inflation at many of its sites.
To stabilise the business, NCP has invested in new car park developments and implemented cost-cutting measures, but its losses have continued to grow. Coupled with a surge in rent costs and tighter cash flow, the company has concluded that moving toward administration is its only viable option.
It added: “In light of these circumstances, and after considering various financing options including potential asset disposals, NCP determined that no prospect of improvement in its cash‑flow position could be identified.
Accordingly, with the aim of protecting creditors’ economic interests through the preservation of the value of the business and its assets, NCP’s Board of Directors resolved to place NCP into Administration, an insolvency procedure under the laws of England and Wales.
“PARK24 will continue to cooperate in good faith regarding the orderly conduct of the Administration.”
If administrators are appointed, they will work to restructure or sell parts of the business while keeping car parks operational where feasible.
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