National Car Parks (NCP), the UK's largest car park operator, has entered administration, putting nearly 700 jobs at risk. The company's board called in PwC as administrators after running out of cash and being unable to pay landlords and creditors, with significant rent payments due at the end of March.
PwC stated it would take steps to stabilise the business while assessing options for its future, including a potential sale. All car parks will remain open for now, and staff will stay in their roles. NCP, founded in 1931 and known for its black and yellow signs, employs 682 people and manages 340 car parks across the UK, including in major towns, city centres, airports, hospitals, and transport hubs.
The Japanese-owned company, whose parent Park24 is listed in Tokyo, has struggled due to changing commuting and driving patterns, according to PwC. Park24 reported NCP's debts at £352.6 million, blaming the collapse in demand during the Covid-19 pandemic, a subdued recovery, rising energy costs, and persistently high UK inflation leading to increased rent obligations.
Since the pandemic, demand for parking has not recovered to historic levels, especially in city centres and commuter towns, as more people work from home. Long-term, inflexible leases have prevented NCP from cutting costs in line with revenues or exiting loss-making sites, pushing it into the red. Administrators are exploring a sale of all or part of the business and will review the viability of each location, which could lead to site closures.
Zelf Hussain, joint administrator and PwC partner, said: “NCP has faced a challenging trading environment over several years, with changing consumer behaviours impacting volumes, and a high fixed cost-base leading to trading losses.” He added that they would engage with landlords, employees, and other stakeholders to secure the best possible outcome for creditors.
Park24 noted that despite efforts to address lower demand, NCP's structural losses continued. NCP was founded by Col Frederick Lucas in west London in 1931 and expanded significantly after 1959. It has been owned by various private equity firms and an infrastructure fund run by Macquarie, which loaded it with debt. In 2017, it was sold to Park24 and the Development Bank of Japan.
