Connect with us
https://propermanchester.com.temp.link/wp-content/uploads/2019/11/secret-suppers-advert.jpg

News

Trafford Centre might be forced to close as owners Intu ‘prepare administration plan’

Just in…

Alex Watson

Published

on

TOOEDDD / Wikimedia

Intu, the owner of the Trafford Centre, has warned that the shopping centre may be forced to shut. 

Intu has appointed KPMG to prepare a contingency plan for administration and has warned shoppers the famous Trafford Centre might be forced to close, the Manchester Evening News reports.

Intu Properties is currently struggling with £5bn debt and remains locked in crunch talks with lenders after being hard hit from the coronavirus pandemic.

The group also owns Lakeside shopping centre in Essex, and confirmed today they have KPMG on standby as administrator. It is currently negotiating details with lenders as it looks to secure breathing space ahead of a looming deadline on Friday.

Jonathan Hutchins

Intu is hoping to arrange a ‘standstill agreement’ on terms of up to 18 months but said it’s likely this will only be 15 months.

Its lenders have explain that ‘there is a risk that centres may have to close for a period’ if they cannot reach an agreement. 

Intu Properties is trying to negotiate a freeze on loan repayments, however increasing demands from landlords is reportedly making this unlikely.

The company put agreements with creditors on hold to ride out the coronavirus pandemic at the start of June, wavering debts until June 26th, however, according to reports it expects to breach debt commitments by this deadline amid falling falling rental payments. 

Mike Peel

The company announced in May ‘robust action’ against large tenant businesses who haven’t paid their rent during the coronavirus lockdown.

For the first quarter of the year, the company only received 40% of rent and services charges which were due by the end of March 2020.

The firm, which lost £2bn in 2019, warned in March it could collapse if it cannot find further funds.

A statement by Intu on May 18th said that: “in particular looking to achieve stability through standstill-based agreements with relevant financial stakeholders across its structures, at both the asset and group level.”

Seth Whales

The standstill strategy statement says: “At this stage it is not expected that the duration will exceed 15 months.

“How the operations of individual centres are to be funded. Some centres haver educed rent collections as a result of Covid-19 and cash trapped under their financing arrangements which restrict their ability to pay for support (such as shopping centre staff) from other entities in the Intu group.

“Securing additional funding in centres funded by bond structures is more difficult to achieve and, in this connection, consent will be sought shortly from the stockholders of Intu Debenture PLC to authorise the trustee to release certain monies within the existing debt structure to be used for short term liquidity needs.

“Other centres may also require cash injections for these purposes. This all remains subject to further negotiations, with no certainty as to whether Intu will achieve a standstill, or on what terms or for what duration.

“Further announcements will be made as appropriate. Notwithstanding the progress made with lenders, Intu has also appointed KPMG to contingency plan for administration. In the event that Intu Properties plc is unable to reach a standstill, it is likely it and certain other central entities will fall into administration.

“In this situation, all property companies would be required to pre-fund the administrator to provide central services to the shopping centres. If the administrator is not pre-funded then there is a risk that centres may have to close for a period.”

Eirian Evans / Geograph

Intu Properties own nine of the country’s top 20 shopping centres and has been struggling with the shrinking high street retail market for some time. 

Intu is laden with debts estimated to be around £5bn. The value of the shopping centres have fallen by £1.9bn due to the down turn of the market. 

News

Holidaymakers in Ibiza and Majorca will have to wear a face mask at all times in public

Just in…

Alex Watson

Published

on

Holidaymakers who are jetting to Majorca and Ibiza will have to wear face masks, it has been confirmed today. 

The Balearic Islands have confirmed that they are tightening the rules of mask-wearing. The news comes just hours after Catalonia revealed it will be making face masks obligatory at all times in public. 

It has yet to be confirmed if wearing a face mask will be mandatory on the beach.

Only yesterday did Catalonia extend the exceptions of their rules on making people wear face masks on the beaches.

Oscar Nord/Unsplash

If you fail to follow the rules, meaning wearing a mask that covers your nose and mouth, you will be hit with a hefty €100 fine.

Until now in Spain, face masks have only been obligatory in public places such as shops, and public spaces where social distancing of 5 feet cannot be maintained.

The change means tourists will be expected to wear masks also at any point outside, although practising sport or children under six are exempt. 

For those living under the same roof, wearing a face mask while travelling in the same car is not compulsory. 

Unsplash

Police are expected to provide advice to foreign holidaymakers who may be unfamiliar with the new rules before they start issuing fines. 

News regarding the rules in Costa del Sol are yet to be announced. 

Continue Reading

News

Free TV licences for pensioners will officially be axed from August

It’s expected it will effect 3.7 million pensioners.

Alex Watson

Published

on

It has been confirmed that millions of pensioners will be stripped of free TV licenses from August 1st. 

The BBC has announced there will be no extension to the two-month stay-of-execution that was triggered by the coronavirus pandemic. 

It is estimated that 3.7 million over-75s will now have to pay £157.50 a year to watch their favourite TV shows. 

In the 2017 Conservative election, they pledged to protect free licenses for the rest of Parliament, which was set to run until 2022. 

However, the BBC had been responsible for the lifeline from June 2020 following a deal agreed in 2015. 

The BBC says keeping licenses free for all over 75s would cost £745 million. Instead, the corporation is introducing restrictions that mean only over-75s who receive Pension Credit will be eligible. 

BBC chairman Sir David Clementi said: “The decision to commence the new scheme in August has not been easy, but implementation of the new scheme will be Covid-19 safe.

“The BBC could not continue delaying the scheme without impacting on programmes and services.

“Around 1.5 million households could get free TV licences if someone is over 75 and receives Pension Credit, and 450,000 of them have already applied.

“And critically it is not the BBC making that judgment about poverty. It is the Government who sets and controls that measure.

“Like most organisations the BBC is under severe financial pressure due to the pandemic, yet we have continued to put the public first in all our decisions.

“I believe continuing to fund some free TV licences is the fairest decision for the public, as we will be supporting the poorest oldest pensioners without impacting the programmes and services that all audiences love.”

Shadow Culture Minister, Chris Matheson, issued a last plea for the government to take responsibility in the Commons today. 

He said: “The BBC is cutting jobs and content to pay for the cost of the licence dumped on them by the Government – and pensioners are forced to choose between eating and watching TV.”

Culture Minister Matt Warman said: “The fact is that the BBC has had a generous licence fee settlement and it is deeply disappointing that they have chosen to go down the path that they apparently are going down.

“I would, of course, hope that there is yet time to reconsider that because he is right to say that television has been vital comfort for many people in the last few months.

Continue Reading

News

Boots to cut more than 4,000 jobs due to ‘significant impact’ of coronavirus

JUST IN.

Proper Manchester

Published

on

Lewis Clarke / Geograph

Boots has said that more than 4,000 jobs are to be cut, about 7% of its workforce.

According to Boots, the company is consulting on plans to restructure its head office and store teams, as well as closing 48 Boots Opticians stores.

A Boots spokesman has said the move was part of action to mitigate the ‘significant impact’ of coronavirus, and will particularly affect staff who work in the Nottingham support office.

Some deputy and assistant manager, beauty adviser and customer adviser roles will also be affected across its stores.

As well as the job cuts, 48 Boots Opticians stores will also close, the Mirror reports.

Sebastian James, managing director of Boots UK, said: “The proposals announced today are decisive actions to accelerate our transformation plan, allow Boots to continue its vital role as part of the UK health system, and ensure profitable long-term growth.

“I am so very grateful to all our colleagues for their dedication during the last few challenging months.

“They have stepped forward to support their communities, our customers and the NHS during this time, and I am extremely proud to be serving alongside them.

“In doing this, we are building a stronger and more modern Boots for our customers, patients and colleagues.

“We recognise that today’s proposals will be very difficult for the remarkable people who make up the heart of our business, and we will do everything in our power to provide the fullest support during this time.”

Continue Reading

Receive our latest news, events & unique stories

Privacy and data policy

We may earn a commission when you use one of our links to make a purchase

Copyright © 2019 Proper Manchester