The British retail property fund Intu has applied for deferment of payment. The company failed to reach an agreement with a group of creditors on renewed deferral of loan repayments. Intu owns some of the largest shopping centers in the UK, including the gigantic Trafford Center in Manchester.
Intu is severely affected by the corona crisis, which forced many tenants of its retail spaces to close. As a result, the property fund missed a lot of rent. Even before the corona crisis, Intu was already suffering from the slump in the British retail landscape, which caused a decline in the value of the real estate portfolio. At the same time, the company carried a net debt of £ 4.5 billion.
Due to the financial problems, approximately 2500 jobs are at stake at Intu. The shopping centers will remain open for the time being.