The UK’s largest car park operator could be on the brink of collapse, which could lead to 1,000 job losses.
NCP controls more than 800 parking sites across the UK, but has today lodged documents with the High Court amid plans to appoint an administrator.
According to This is Money, the company is set to enter administration as part of the formal legal step taken today.
This often provides a company with protection from legal actions for 10 days and was filed this morning at 10.01am.
Reynolds Porter Chamberlain, the law firm representing NCP, said it would be issuing a statement later today.
It is understood that the Japanese-owned National Car Parks Group, although the reason behind the move remained unclear.
Reports from Sky News suggest that PricewaterhouseCooper (PwC) has been lined up to handle the potential insolvency.
The company has come under fire in recent years for issuing drivers with fines, which some have accused of being unfair.
NCP is set to enter administration following the filing of legal notices
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NCP has been owned by the Japanese company Park24 since 2017, after being sold by Macquarie European Infrastructure Fund II (MEIF2).
While the company was first founded in 1931, NCP said it took off after being purchased by Central Car Parks in 1959.
The latest financial accounts from NCP show a pre-tax loss of £28.2million in the year to September 30, 2023, while losses of £22.5million were seen the year before.
NCP and other parking operators took significant hits during the coronavirus pandemic when car parks were left largely unused for months.
A statement on the NCP administration decision is expected in the coming hours
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In the days following the outbreak of the pandemic, NCP announced that it would be offering free parking to all NHS staff.
The then-CEO of NCP said the company wanted to thank hard-working NHS staff for their work during difficult times.
Jonathan Scott said at the time: “We hope this gesture helps you focus on your incredible work, and not have to worry about train times and transport restrictions.”
New data from the RAC Foundation shows that private parking companies issued 76 million tickets over the last seven years.
NCP offered free parking to NHS staff during the pandemic
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The Parking (Code of Practice) Bill received royal assent in March 2019, although drivers are still waiting for the measures to be introduced fully.
The original intention of the Code was to limit the amount that drivers could be fined for small contraventions to help protect motorists.
Steve Gooding, director of the RAC Foundation, said it was “absurd” that 48,000 drivers are getting slapped with a ticket every day.
“In this financial climate, who knowingly risks getting charged a ‘penalty’ of typically £100? This suggests something fundamental is wrong with the system,” Mr Gooding added.
