The owner of the Trafford Centre in Greater Manchester Intu has confirmed it has collapsed into administration after failed talks with lender.
But Intu said its shopping centres will continue to trade
The shopping centre owner had been in a desperate scramble to agree a “standstill” on its current loan agreements.
Earlier on Friday the group said it was likely to appoint administrators, as it remained unable to agree the terms of such a deal with its creditors
Intu said it has filed to appoint James Robert Tucker, Michael Robert Pink and David John Pike from KPMG as administrators for the company.
The announcement came minutes after the London Stock Exchange suspended shares in the shopping centre owner
The group has struggled under a £4.5 billion debt burden for the past year, but has been hammered by significantly lower rent payments from retail tenants since the coronavirus outbreak.
Intu employs about 3,000 staff across the UK, while a further 102,000 work for the shops within its shopping centres.
It warned on Tuesday that its malls may be forced to shut if it was unable to secure the standstill agreement.