NCP, one of the UK’s largest car park operators, has entered administration, placing 682 jobs in jeopardy.
The company, which manages approximately 340 sites nationwide, has struggled with declining occupancy and mounting losses since the Covid-19 pandemic.
PwC has been appointed as administrator for the business.
Despite the move, all NCP car parks will continue to operate as normal, and staff will remain employed while administrators assess the company’s options.
The firm’s financial difficulties stem from a significant post-pandemic drop in demand for parking, which has failed to rebound to pre-Covid levels.
This downturn has been particularly acute in city centre and commuter locations, attributed to shifts in commuting and consumer driving patterns, which have affected car park occupancy.
NCP also cited challenges posed by the high costs associated with long-term inflexible leases on sites that have become unprofitable.
Some or all of NCP may be put up for sale as one of the options to secure its future.
Administrators said NCP will be assessing the viability of each location, and some sites may need to be closed as a result.
Zelf Hussain, joint administrator and partner for PwC, said: “NCP has faced a challenging trading environment over several years, with changing consumer behaviours impacting volumes, and a high fixed cost-base leading to trading losses.
“Our priority on appointment is to ensure continuity of service while we undertake a detailed review of the business.
“All sites are open, staff remain in post, and trading continues as normal.
“We will be engaging 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 Japanese firm Park24.
It operates about 340 car parks across the UK including in major towns and city centres, airports, hospitals, and train stations.
Prices differ at each site but some central London locations can cost up to £60 for 24 hours parking.
Latest accounts filed at Companies House show that it made a pre-tax loss of £28.2 million in the year to 30 September 2023 and was £22.5 million in the red the previous year.
