Braehead shopping centre under threat after talks collapse

Owner previously warned its shopping centres could be forced to close if no agreements reached with lenders.

Braehead shopping centre faces an uncertain future after its owner said it was on the brink of administration.

Intu had been trying to reach an agreement over current loan agreements, but said on Friday that talks had collapsed.

Earlier this week, it was warned the centre could be forced to close “for a period” if a deal couldn’t be reached with lenders.

Braehead, in Renfrew, hosts a number of big-name retailers – including M&S, Apple, Disney, Boots and Next.

At the entertainment complex Soar there is a multiplex cinema, indoor ski slope, laser tag facility, bowling alley and a number of pubs and restaurants.

Intu also owns the Trafford Centre in Manchester and Lakeside in Essex.

In a statement the group said “insufficient alignment and agreement has been achieved” following the negotiations.

It added: “The board is therefore considering the position of Intu with a view to protecting the interests of its stakeholders.

“This is likely to involve the appointment of administrators. A further announcement will be made as soon as possible.”

Earlier this week, Intu said it put administrators from KPMG on stand-by as it looked to secure a deal ahead of the midnight deadline on its current loan covenants.

The group has struggled under a £4.5bn 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 3000 staff across the UK, while a further 102,000 work for the shops within its shopping centres.

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