Intu goes into administraion. The end of shopping centres ?
Discussion
You mean we all go back to shopping via the internet.
I’m sorry but walking around a shopping centre. Full of screamnng kids. People who dawdle about oblivious to the people around them. Inflated prices.
No thanks. I for one can’t remember the last time I went to a proper shopping centre. My high street is full of bookies and coffee shops or overpriced boutiques.
Sorry I’m happy to stay shopping online.
I’m sorry but walking around a shopping centre. Full of screamnng kids. People who dawdle about oblivious to the people around them. Inflated prices.
No thanks. I for one can’t remember the last time I went to a proper shopping centre. My high street is full of bookies and coffee shops or overpriced boutiques.
Sorry I’m happy to stay shopping online.
rustfalia said:
Just switch to shopping online.
Although there are plenty of weirdos that go to a rammed shopping centre for a day out and a wonder around
^Although there are plenty of weirdos that go to a rammed shopping centre for a day out and a wonder around
This
We never venture into shopping centres. Crowded shopping centres stinking of farts, sweat and various other manky body odours is hell on earth style shopping.
Everything is ordered online, it's much more civilised.
Edited by A1VDY on Friday 26th June 12:25
robinessex said:
So what's going to happen? They carry on, somehow, maybe changing their entire style to something that will bring the customers back. Or they all go bust, get turned into flats/apartments, and we all go back to shopping in the local High Street. Remember those?
All well and good as long as you have a local highstreet, we don't, that said only a small bit of MK shopping centre is owned by them and no one calls it "intu" they call it "the new bit", despite it being 20 odd years old 
. They have always had trouble with it one way or another here, rents too high and shops that are almost as flakey as a box of cornflakes for the most part end up there for a short while. Some do ok in there round here though, Apple, Lego and the banks, everything else in there at one stage or another has been in administration or close to pretty much (Debenhams being the biggest one of note)The crunch will be 30th June when quarterly/monthly rents are due and pst 4th July.
How much will Intu collect? How many shops and restaurants will be open in the shopping centres or even on the High Street? They know it's going to be grim. They can barely service their £4.5 billion debt at current rent levels let alone at lower values.
How much will Intu collect? How many shops and restaurants will be open in the shopping centres or even on the High Street? They know it's going to be grim. They can barely service their £4.5 billion debt at current rent levels let alone at lower values.
A1VDY said:
rustfalia said:
Just switch to shopping online.
Although there are plenty of weirdos that go to a rammed shopping centre for a day out and a wonder around
^Although there are plenty of weirdos that go to a rammed shopping centre for a day out and a wonder around
This
We never venture into shopping centres. Crowded shopping centres stinking of farts, sweat and various other manky body odours is hell on earth style shopping.
Everything is ordered online, it's much more civilised.
Edited by A1VDY on Friday 26th June 12:25
It’ll be good for Bluewater (which is a perfectly pleasant and civilised place to go so long as you don’t do so at the weekend or school holidays). I’ve always found it odd that people went to Lakeside when an arguably “better” shopping centre is only 15 minutes away and given the current economic climate and inexorable trend to online shopping, it’s hard to imagine it’s possible for two such large, out of town malls in such close proximity to both survive.
WonkeyDonkey said:
I've never really understand how a company like this goes into administration. Once the building is built then surely all they look after is maintenance. The rental income must be massive and from what I last read they didn't have a massive amount of vacant lots.
Very often they don't own the land, they have to rent it. Their tenants are all asking for extensions on their rents, revenue sharing is 0 as everything's shut. Maintenance still has to be done, services run etc to keep them in good condition, plus all the infrastructure behind the scenes.
DeWar said:
It’ll be good for Bluewater
My immediate reaction was "unless you are a customer". I agree there are far better times to go than at peaks, but if Lakeside has gone then as you say, 15 mins max away, everyone will flock over there (kerching, Dartford Crossing!) and it will become a lot less pleasant. I probably only go once or twice a year anyway but I can see it being rammed.Unless it was just a rebrand, Intu only fairly recently appeared didn't they? Or were they the original owners and builders of lakeside etc?
We have one near us, its ok but not somewhere i frequent a lot. They really seem to have changed to make it a destination, so cinema, restaurants and events in the holidays etc. But obviously none of which could take place now.
It would make brilliant flats, cut the retail space in half, keep the car park (commuter belt) and build on the other half.
We have one near us, its ok but not somewhere i frequent a lot. They really seem to have changed to make it a destination, so cinema, restaurants and events in the holidays etc. But obviously none of which could take place now.
It would make brilliant flats, cut the retail space in half, keep the car park (commuter belt) and build on the other half.
Quite a lot of variables in the scenario.
Although they own the buildings, land may not be theirs.
Intu have always had cash issues, their whole business is build on asset values and future business income.
Unfortunately having £bn on the balance sheet doesn't equate to £bn in cash.
Imagine your house, you might have a £m house, and £500k in equity but if you're not getting paid and you can't afford your mortgage you're pretty screwed. You might be asset rich, that if you sold your house you'd have in theory £500k. But if you can't sell your house then you're bankrupt.
Same situation for intu.
They have to pay their debts and they've had falling rental income for years due to Debenhams, house of Fraser and many many others pulling out /also going into Administration. Lots have downsized their stores to increase online presence, again reduced income for intu.
We have Metro centre and Intu Eldon Square near us and everytime we visit more stores are closed. Fixed costs / overheads are unchanged for intu but its simple issue of reduced income.
Sad to see, but intu have been slow to adapt.
They've noticed while shops are in less demand, eating out is increasing, hence why many centres have seen increasing number of places to eat. But they have to part fund the food establishment to encourage them to open up and that's expensive.
Could see this a mile off.
I think what will happen is shopping centres will remain, but will definitely reduce in size, and sell land / properties for alternative use and you'll have shops and smaller places.
Eldon Square in Newcastle is in prime location, literally the heart of the city so I can easy see 30% of that sold to make way for more eateries, clubs, hotels etc. Oh and for some stupid reason, (a trend which I cannot fathom) more student accommodation!!
Although they own the buildings, land may not be theirs.
Intu have always had cash issues, their whole business is build on asset values and future business income.
Unfortunately having £bn on the balance sheet doesn't equate to £bn in cash.
Imagine your house, you might have a £m house, and £500k in equity but if you're not getting paid and you can't afford your mortgage you're pretty screwed. You might be asset rich, that if you sold your house you'd have in theory £500k. But if you can't sell your house then you're bankrupt.
Same situation for intu.
They have to pay their debts and they've had falling rental income for years due to Debenhams, house of Fraser and many many others pulling out /also going into Administration. Lots have downsized their stores to increase online presence, again reduced income for intu.
We have Metro centre and Intu Eldon Square near us and everytime we visit more stores are closed. Fixed costs / overheads are unchanged for intu but its simple issue of reduced income.
Sad to see, but intu have been slow to adapt.
They've noticed while shops are in less demand, eating out is increasing, hence why many centres have seen increasing number of places to eat. But they have to part fund the food establishment to encourage them to open up and that's expensive.
Could see this a mile off.
I think what will happen is shopping centres will remain, but will definitely reduce in size, and sell land / properties for alternative use and you'll have shops and smaller places.
Eldon Square in Newcastle is in prime location, literally the heart of the city so I can easy see 30% of that sold to make way for more eateries, clubs, hotels etc. Oh and for some stupid reason, (a trend which I cannot fathom) more student accommodation!!
Edited by ahas on Friday 26th June 12:57
Edited by ahas on Friday 26th June 12:59
Companies like intu held oligopolies and like many oligopolies people are happy to see the back of them when something better comes along.
15 years ago it was glorious for them, consumers had little choice they would charge lots of money to the consumers and everyone along the chain would get a nice slice of the pie.
15 years ago it was glorious for them, consumers had little choice they would charge lots of money to the consumers and everyone along the chain would get a nice slice of the pie.
2 sMoKiN bArReLs said:
It’s a proper problem for Nottingham. They got half way through a refurbishment of the Broadmarsh Centre and abandoned it in March. Wilco were ordered to vacate with a day’s notice in early June.
It now stands half demolished, and likely to remain that way I guess!
TBH still an improvement to what was there before...It now stands half demolished, and likely to remain that way I guess!
Nickbrapp said:
Local councils will buy them
Hopefully they will reduce the rents so some shops actually move in
In Cardiff, shops come for a year of the free rent and then close down, the st David’s centre is 3/4 empty now!
Local councils already have a decent share in the centres already! They're shi*ting themselves already on how to deal with the issue! Hopefully they will reduce the rents so some shops actually move in
In Cardiff, shops come for a year of the free rent and then close down, the st David’s centre is 3/4 empty now!
Intu goes bust, councils lose rates income, aswell as their share in the centres worth as much a toffee penny and the government has already paid £bn in support to acknowledge loss of business rates income... Not a good time.
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