By Intu Watford faces administration
Following concerns from local residents and businesses, Watford Borough Council have explained what might happen if intu Watford were to go into administration.
intu run around 17 shopping centres across the UK.
The firm is currently in serious financial trouble with debts of £4.3 billion, this is in part due to the Covid-19 crisis, although the firm had been experiencing difficulty prior to this.
But now, the company is facing the threat of administration as the situation has worsened because many retailers have chosen not to pay their rent whilst shops have been unable to open.
Watford Borough Council have expressed concerns about intu’s current financial status and what this might mean for the economic future of Watford and its retail sector.
Watford Borough Council has a 7% stake in intu Watford, with intu holding the remaining 93%.
The Council currently hold the freehold on the intu Watford site, meaning they have long-term interests over the centre.
A spokesperson for the council said:
“Watford has one of the highest occupancy rates of a town centre in the UK and at a time when we see many town centres struggling across the country, Watford has continued to buck the trend with increases in footfall.
“We want intu to continue operating our centre and believe investing in our town is an attractive proposition for many businesses.”
The lease does contain the covenants that allows the council to step in, in the event of insolvency.
Watford Borough Council receives £890,000 per annum in rental income from intu.
Thus far, this has been paid in full.
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