Car parks operator NCP has written to landlords begging for rent cuts, after abandoning a controversial ploy to force them into accepting steep concessions.
NCP, owned by Japan’s Park24 and the state-backed Development Bank of Japan, has repeated warnings that its parent company could pull financial support if landlords refuse to agree.
It is understood that accountancy firm PwC has been lined up to handle a potential administration.
In a letter to two groups of landlords on Thursday, NCP said it hoped to secure “consensual deals” that would allow the business to “move forward without the need for a formal restructuring plan”.
“The restructuring plan remains a viable option for NCP to pursue if the current negotiations or other potential options do not result in a better outcome for the business and creditors,” NCP said.
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NCP, which runs more than 500 car parks and employs 1,000 people, enraged landlords earlier this year when it began withdrawing rent payments and later announced plans to push through a so-called cram down — an insolvency process that allows businesses to overturn the objections of creditors if a judge agrees they can.
However, landlords including Aberdeen Standard, Legal & General and Grosvenor are said to have hired advisers to fight the restructuring. In June, days before creditors were due to vote, SoftBank-backed REEF Technology and Bain Capital Credit tabled a bid to seize control of NCP.
The car parks operator issued a statement to say that it had “temporarily suspended” its plans.
NCP declined to comment.
